Paragon Banking Group PLC

Capital/Financing Update • Sep 13, 2013

National Storage Mechanism | Additional information

You don't have Javascript enabled. For full functionality this page requires javascript to be enabled.

RNS Number : 9931N

Paragon Group Of Companies PLC

13 September 2013

The Paragon Group of Companies PLC

13 September 2013

Launch and pricing of securitisation

The Paragon Group of Companies PLC ("Paragon") is pleased to announce the launch of its latest securitisation, Paragon Mortgages (No.18) PLC ("PM18").  The joint lead managers are Lloyds Bank, Macquarie Bank Limited and Morgan Stanley.

The final terms of PM18 will be determined following discussions with the joint lead managers and investors.

The issue amount is £273.0 million, comprising:

·      £238.1 million of AAA rated notes at a margin of 115 basis points over three

month LIBOR

·      £15.7 million of AA rated notes at a margin of 170 basis points over three month LIBOR

·      £13.7 million of A rated notes at a margin of 240 basis points over three month LIBOR

·      £5.5 million of subordinated notes retained by Paragon

·      Paragon will also invest £8.19 million in the First Loss Fund, bringing its total investment in PM18 to £13.69 million, or 5.0% of the issue amount

This securitisation will support Paragon's on-going new lending programme.

A further announcement on the progress of PM18 will be made in due course.

For further information, please contact:

Nigel Terrington, Chief Executive, 0207 786 8455

Nick Keen, Finance Director, 0121 712 2060

This information is provided by RNS

The company news service from the London Stock Exchange

END

MSCNKNDKQBKDOCD