Paragon Group completes £250m mortgage securitisation

SOLIHULL-based home credit and mortgages group Paragon has completed a £250m securitisation – its third for the year to date.

The SPV, Paragon Mortgages (No.21), has pulled together a package jointly funded by Lloyds Bank Corporate Markets, Macquarie Bank – London branch, Morgan Stanley and Natixis.
 
The final terms of the £250m securitisation are:
 
•      £217.9m of Class A Notes priced at 80 basis points over three month LIBOR
•      £17.7m of Class B Notes priced at 140 basis points over three month LIBOR
•      £8.1m of Class C Notes priced at 175 basis points over three month LIBOR
•      £6.3m of Class D Notes retained by a Paragon Group company
 
A Paragon Group company provided a £6.25m First Loss Fund.
 
Commenting on the announcement, Paragon’s chief executive, Nigel Terrington, said: “We are delighted with the continued strength of Paragon’s securitisation programme.  Investor demand continues to be strong and PM21 is our third transaction in 2014, during which we have issued £950m of Notes, which supports Paragon’s on-going new lending programme and places the group as one of the most frequent issuers in the UK.”
 
Paragon said it intended to announce its full year results for the year ended September 30, 2014 on November 25.