Paragon Banking Group PLC

Capital/Financing Update • Mar 25, 2015

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RNS Number : 4246I

Paragon Group Of Companies PLC

25 March 2015

The Paragon Group of Companies PLC

25 March 2015

Completion of securitisation

The Paragon Group of Companies PLC ("Paragon") is pleased to announce that it has completed its latest securitisation, Paragon Mortgages (No.22) PLC ("PM22"). The joint lead managers were Lloyds Bank Corporate Markets, Macquarie Bank Limited London Branch, Morgan Stanley and Natixis.

The final terms of the £300.0 million equivalent securitisation are as follows:

·      €164.0 million of Class A1 Notes priced at 50 basis points over three month EURIBOR (£116.8 million Sterling equivalent)

·      £151.7 million of Class A2 Notes priced at 80 basis points over three month LIBOR

·      £12.0 million of Class B Notes priced at 135 basis points over three month LIBOR

·      £12.0 million of Class C Notes priced at 165 basis points over three month LIBOR

·      £7.5 million of Class E Notes retained by a Paragon Group company

A Paragon Group company provided a £7.5 million First Loss Fund.

Commenting on today's announcement, Paragon's Chief Executive, Nigel 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 31 March 2015 on Tuesday 19 May 2015.

For further information, please contact:

Richard Woodman, Finance Director, 0121 712 2607

Kathryn Rhinds, Investor Relations Manager, 0121 712 3161

This information is provided by RNS

The company news service from the London Stock Exchange

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