Paragon Grp Of Co's PAG Warehouse Facility Renewal and Increase

  Paragon Grp Of Co's (PAG) - 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





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

END


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