Warehouse Facility Renewal and Increase

RNS Number : 2756Q

Paragon Group Of Companies PLC

05 November 2012

 



RNS ANNOUNCEMENT

THE PARAGON GROUP OF COMPANIES PLC

5 November 2012

Paragon announces extension and increased warehouse facility with Macquarie Bank

The Board of Directors of The Paragon Group of Companies PLC ("Paragon") is pleased to announce the renewal of its mortgage warehouse facility with Macquarie Bank Limited (London Branch), ("Macquarie"), with an increase in the facility to £250 million from £200 million. 

The facility, rated by Fitch Ratings, will be available until 13 December 2016 (and for drawing until 13 December 2014) to Paragon Fourth Funding Limited, a 100% owned subsidiary of Paragon and interest will be charged on the amount drawn at an unchanged rate of three month LIBOR plus 2.875%. Paragon uses warehouse facilities to originate and aggregate mortgage loans, where they are held for a limited period prior to long-term funding in the mortgage backed securitisation markets. Paragon recently completed its latest securitisation, PM17, amounting to £200 million. 

Commenting on the announcement, Chief Executive, Nigel Terrington, said: "We are delighted to have strengthened our relationship with Macquarie, with whom we have been working closely since our return to new lending.  This extension and increase in the loan facility means that the total warehouse capacity within the Group is now £450 million and supports our growth plans in the buy-to-let market, where we see continued landlord confidence in the sector, supported by strong tenant demand."

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

For more information please contact:

Nigel S Terrington, Chief Executive 07974 980157

Nick Keen, Finance Director 0121 712 2060

Paul Farrow, Fishburn Hedges 0207 544 3040

 

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