Securitisation Release
October 15 2003 - 2:00AM
UK Regulatory
RNS Number:9065Q
Paragon Group Of Companies PLC
15 October 2003
PARAGON ACCESSES NEW FUNDING MARKET
IN LARGEST EVER SECURITISATION DEAL
The Paragon Group of Companies PLC yesterday completed a financing totaling
US$1.2 billion backed by prime buy-to-let mortgages. This is the largest
securitisation by Paragon to date and brings its total issuance to #8.3 billion
through 41 public transactions.
For the first time, Paragon has offered bonds in several currencies attracting
new investors in the United States and Continental Europe. Demand was strong
across all currencies and the transaction size was increased in an attempt to
satisfy the demand.
The notes were issued in various tranches as well as multi-currencies and were
rated by Standard & Poor's, Moody's and Fitch.
Nick Keen, Paragon's Finance Director comments:
"This transaction represents an exciting development in the Group's
securitisation programme, introducing the Paragon name for the first time to
investors in the US, as well as to investors in Europe and the UK. Investor
interest was highly positive and resulted in the upsizing of the deal.
Paragon continues to focus on the professional buy-to-let market where asset
performance remains excellent and where growth prospects are high. The recent
acquisition of Britannic Money, which now also focuses on originating prime
buy-to-let mortgage assets, will enhance the Paragon programme issuance further
and we expect to bring transactions similar to Paragon Mortgages (No.6) PLC to
the market on a regular basis in the future."
-end-
For further information, please contact:
Nick Keen, Finance Director
Paragon Group of Companies
Direct line: 0121 712 2060
Mark Baker
The Wriglesworth Consultancy
Office: 020 7620 2228
Notes to editors:
1. The Paragon Group of Companies PLC is one of the UK's largest independent
specialist lenders offering buy-to-let mortgages, personal loans, retail and
vehicle finance, with over #5 billion of assets under management.
In its interim results for the six months ended 31 March 2003, pre-tax
profits rose 14.1% to #23.4 million (2002 H1: #20.5 million), with
buy-to-let mortgage advances up 37.9% to #330.9 million (2002 H1: #240.0
million) and provision for losses down 14.6% to #8.8 million (2002 H1: #10.3
million).
2. The #715,000,000 of Notes are issued by Paragon Mortgages (No.6) PLC in 7
classes and in three currencies. The Class A1 senior notes in the amount of
$334,000,000 have been structured to appeal to US money market funds, and
have been assigned a rating of P1/A1+/F-1+ by Moody's Investor Service
Limited, Standard & Poor's Ratings Services and Fitch Ratings respectively.
The longer dated Class A2 senior notes are issued in three currencies, US
Dollars ($315,000,000), GBP Sterling (#115,000,000) and Euros
(E200,000,000). All of the A2 senior notes have been assigned a rating of
Aaa/AAA/AAA by Moody's, Standard & Poor's and Fitch respectively who have
assigned ratings of A2/A/A, respectively, to the Class B Notes. The Class B
Notes are also issued in three currencies US Dollars ($25,000,000) GBP
Sterling (#15,500,000) and Euros (E59,000,000). Although all classes of
Notes share the same security, the Class A Notes have priority over the
Class B Notes to quarterly payments of interest and as to principal in the
event of enforcement.
3. The margins over the relevant currency reference rate for each of the
tranches of the Notes are: 2bp for the Class A1 Notes, 35bp for the Class A2
Notes, 140bp for the Class B Notes.
4. The Notes are secured by prime buy-to-let mortgages, as well as a cash fund
of 2.7% of the aggregate initial balances of the Notes. Paragon Finance PLC
is the administrator for the issue.
5. Barclays Capital and The Royal Bank of Scotland are joint book runners for
the offering.
6. Barclays Capital is the investment banking division of Barclays Bank PLC, one
of the largest multi-national financial services groups in the world. With a
focus on financing, risk management and corporate finance advisory services,
Barclays Capital acts internationally as an intermediary and adviser to
corporates, financial institutions, governments and supranational
organisations. Barclays Capital, which has the support of an AA rated parent
bank with a balance sheet of over #400 billion, has offices in 23 countries
and around 5,500 people worldwide, giving it the reach and distribution
power to meet clients' needs wherever they are based.
7. The Royal Bank of Scotland is a broadly based financial services group with
operations spanning clearing banking, corporate banking, financial services,
investment management and insurance, both in the UK and overseas. It is the
second largest in bank in Europe and the fifth largest banking group in the
world by market capitalisation. The Group serves over 20 million customers.
Through its Financial Markets division it provides specialist services in
capital markets, global foreign exchange, currency and structured
derivatives, money markets, together with a wide range of interest rate
management services to The Royal Bank of Scotland and NatWest international
corporate and institutional client base.
This information is provided by RNS
The company news service from the London Stock Exchange
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