Paragon Group completes £300m securitisation
SOLIHULL-based home credit and mortgages group, Paragon has completed an important step on its journey to broaden and diversify its funding sources, its chief executive has said.
Nigel Terrington said the completion of the £300m Paragon Mortgages (No.22) securitisation would help support its service to the buy-to-let market.
The joint lead managers on PM22 are Lloyds Bank Corporate Markets, Macquarie Bank (London Branch), Morgan Stanley and Natixis.
The final terms of the securitisation see:
• €164.0m (£116.8m) of Class A1 Notes priced at 50 basis points over three month EURIBOR
• £151.7m of Class A2 Notes priced at 80 basis points over three month LIBOR
• £12.0m of Class B Notes priced at 135 basis points over three month LIBOR
• £12.0m of Class C Notes priced at 165 basis points over three month LIBOR
• £7.5m of Class E Notes retained by the Paragon Group
Terrington, said: “This transaction represents a further significant step in our strategy to broaden and diversify our funding sources. Building on our success in the Sterling RMBS Market issuance in recent years, the European investor base provides access to a deep source of demand and we expect to offer further Euro tranches in the future.
“The buy-to-let market continues to experience strong demand and the positive response from investors will support the continuing growth of Paragon’s buy-to-let franchise.”
Paragon will be announcing its half-year results for the six months ended March 31, 2015 on May 19, 2015.
