Completion of Securitisation

RNS Number : 6102M

Paragon Group Of Companies PLC

17 July 2014

 



The Paragon Group of Companies PLC

17 July 2014

Completion of securitisation

The Paragon Group of Companies PLC ("Paragon") is pleased to announce that it has completed its latest securitisation, Paragon Mortgages (No.20) PLC ("PM20").  The joint lead managers were Lloyds Bank Corporate Markets, Macquarie Bank Limited London Branch and Morgan Stanley.

The final terms of the securitisation are as follows:

- £319 million of Class A Notes priced at 68 basis points over three month LIBOR

- £24 million of Class B Notes priced at 100 basis points over three month LIBOR

- £7 million of Class D Notes retained by a Paragon Group company

A Paragon Group company provided a £10.5 million First Loss Fund.  There were no Class C Notes required or offered in this transaction.

The transaction included the purchase of £110 million of mortgages from Paragon Mortgages (No.16) PLC ("PM16").  PM16, which completed in November 2011, has a call option date on 15 October 2014.

Commenting on today's announcement, Paragon's Chief Executive, Nigel Terrington, said: "We are delighted to announce the completion of our latest securitisation, PM20, and also the intention to call PM16, which is now prefunded.  We have seen a further improvement in pricing from our PM19 transaction in March 2014, reflecting the high quality of our buy-to-let assets.  It was particularly pleasing to note that 91% of the funding is at AAA level, thereby minimising the average weighted cost of funds.  The refinancing of PM16 is another marked step forward for the Group.  It replaces PM16 funding at a margin of Libor +275 bps with funding at Libor +68 bps, together with the release of around £30 million of cash in October 2014 when PM16 is called."

Since September 2013, Paragon has placed £953 million of Notes through its PM18, PM19 and PM20 transactions.  The PM20 securitisation will support Paragon's on-going new lending programme. 

For further information, please contact:

Richard Woodman, Finance Director, 0121 712 2607

Kathryn Rhinds, Investor Relations Manager, 0121 712 3161

Paul Farrow, Fishburn Hedges, 0207 544 3040

 

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