Paragon Grp Of Co's PAG Completion of Securitisation

  Paragon Grp Of Co's (PAG) - Completion of Securitisation

RNS Number : 5279P
Paragon Group Of Companies PLC
25 October 2012


25 October 2012

Completion of securitisation

The Paragon Group of Companies PLC ("Paragon"), through its subsidiary Paragon
Mortgages  (No.17)  PLC   ("PM17"),  has  today   completed  a  £200   million 
securitisation transaction consisting exclusively of buy-to-let assets.

PM17 comprises of £175  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 million of A  rated notes at  a 
margin  of  290  basis  points  over  three  month  LIBOR.  £4.5  million  of 
subordinated notes were retained by Paragon, which also invested £6 million in
the First  Loss Fund,  which brings  its  total investment  in PM17  to  £10.5 
million, or 5.25% of the issue amount.

Nigel  Terrington,  chief  executive,  said:   "The  pricing  of  our   latest 
transaction reflects the strong credit profile of Paragon's buy-to-let  assets 
and our experience as an issuer of  high quality bonds in the mortgage  backed 
securities market. This was only the second public transaction of  buy-to-let 
loans since the  credit crunch  and the  first to  issue A  rated bonds  since 

Paragon will  be announcing  its full-year  results for  the 12  months to  30 
September 2012 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

                     This information is provided by RNS
           The company news service from the London Stock Exchange


MSCGMMZGGKMGZZM -0- Oct/25/2012 10:03 GMT
Press spacebar to pause and continue. Press esc to stop.