Launch of Securitisation

RNS Number : 9883O

Paragon Group Of Companies PLC

18 October 2012

 



The Paragon Group of Companies PLC

18 October 2012

Launch and pricing of securitisation

The Paragon Group of Companies PLC ("Paragon") is pleased to announce the launch of its latest securitisation, Paragon Mortgages (No.17) PLC ("PM17").  The joint lead managers are Lloyds Bank, Macquarie Bank Limited and Morgan Stanley.

The final terms of PM17 will be determined following discussions with the joint lead managers and investors.

The issue amount is £200.0 million, comprising:

·      £175.0 million of AAA rated notes at a margin of 135 basis points over three

·      month LIBOR

·      £10.5 million of AA rated notes at a margin of 190 basis points over three month LIBOR

·      £10.0 million of A rated notes at a margin of 290 basis points over three month LIBOR

·      £4.5 million of subordinated notes retained by Paragon

·      Paragon will also invest £6 million in the First Loss Fund, which will bring its total investment in PM17 to £10.5 million, or 5.25% of the issue amount

This securitisation will support Paragon's on-going new lending programme.

A further announcement on the progress of PM17 will be made in due course.

Paragon intends to announce its full-year results on Tuesday 20 November 2012.

For further information, please contact:

Nigel Terrington, Chief Executive, 0207 786 8455

Nick Keen, Finance Director, 0121 712 2060

Paul Farrow, Fishburn Hedges, 0207 544 3040

 

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