The Paragon Group of Companies PLC
14 January 2014
The information contained herein may only be released, published or distributed in the United Kingdom, Jersey, Guernsey and the Isle of Man in accordance with applicable regulatory requirements. The information contained herein is not for release, publication or distribution in or into the United States, Australia, Canada, Japan, the Republic of Ireland, South Africa or in any other jurisdiction where it is unlawful to distribute this document. The bonds may only be sold in Jersey in compliance with the provisions of the Control of Borrowing (Jersey) Order 1958.
Any offer for subscription, sale or exchange of the bonds within the Isle of Man must be made (i) by an Isle of Man financial services licence holder licensed under section 7 of the Financial Services Act 2008 to do so or (ii) in accordance with any relevant exclusion contained within the Regulated Activities Order 2011 or exemption contained in the Financial Services (Exemptions) Regulations 2011.
14 January 2014
THE PARAGON GROUP OF COMPANIES PLC ("Paragon")
LAUNCH OF 6.125% UNSECURED STERLING RETAIL BONDS
MATURING JANUARY 2022
The Paragon Group of Companies PLC ("Paragon"), the specialist buy-to-let and consumer finance group, has today launched an offer of 6.125% sterling bonds due January 2022. The bonds are available to retail investors and are being issued by Paragon for general corporate purposes. This is the second transaction under a £1 billion Euro Medium Term Note Programme.
Paragon, a leading independent UK specialist buy-to-let lender, is engaged in the provision of consumer loans and the buying and servicing of loan portfolios. A FTSE250 company with £10 billion of loan assets under management, Paragon has operated in the UK markets for over 25 years and has serviced more than one million loan accounts. The credit performance of its £8.3 billion buy-to-let mortgage portfolio is exemplary, with arrears over three months of 0.35% as at 30 September 2013, compared with the latest Council of Mortgage Lenders' data at 1.16%.
Fixed interest at the rate of 6.125% per annum, will be payable semi-annually in arrear on 30 January and 30 July of each year until 30 January 2022. The first coupon payment will be on 30 July 2014. At any time during the life of the bonds, investors are permitted to sell the bonds (within market hours and in normal market conditions) on the open market through their stockbroker.
Canaccord Genuity Limited is acting as Lead Manager on this issue.
The bonds have a minimum initial subscription amount of £2,000 and are available in multiples of £100 thereafter.
The offer period is now open and is expected to close at 5pm (London time) on 27 January 2014, unless Paragon chooses to close the offer early.
The bonds are expected to be listed on the UK Listing Authority's Official List and admitted to trading on the London Stock Exchange's regulated market and through the electronic Order Book for Retail Bonds.
Commenting on the launch, Nigel Terrington, Chief Executive of Paragon, said:
"Paragon delivered strong growth in 2013, surpassing £100 million of profit for the first time in the Group's history. We achieved 90.5% growth in buy-to-let lending, invested £92.8 million in loan portfolio acquisitions and made good progress with our plans to establish a bank and a return to consumer lending during 2014. After the success of our initial retail bond in February 2013, our second offer gives investors a further opportunity to participate in Paragon's future growth."
-Ends-
For further information, please see Paragon's website:
www.paragon-group.co.uk/group/Retail-Bond
For enquiries please contact:
Paragon Nigel Terrington, Chief Executive Nicholas Keen, Finance Director Deborah Bateman, External Relations Director |
020 7786 8455 |
Fishburn Hedges Paul Farrow Anna Moulds |
020 7092 2302 020 7092 2238 |
Canaccord Genuity Adrian Bell Mark Glowrey Henrietta Podd |
020 7523 8019 |
Notes to Editors
About The Paragon Group of Companies PLC
Paragon is a leading buy-to-let mortgage lender and specialist purchaser and servicer of loan assets, with £10 billion in loan assets under management. Since being established in 1985, it is the only specialist lender to maintain an independent position within the UK mortgage market.
The Group operates in two principal areas:
Lending: Buy-to-let specialist lending is provided to landlord customers through Paragon Mortgages and Mortgage Trust brands and the provision of consumer loans. In 1995, Paragon was the first lender to work with the private rented sector to develop the buy-to-let market and, in 2000, it became the only major UK mortgage lender to focus exclusively on buy-to-let products.
Portfolio acquisitions: the investment division of the Group, Idem Capital, undertakes acquisitions of loan portfolios, including first and second mortgages as well as unsecured assets. In addition, the Group services mortgage and loan portfolios for itself and for clients such as banks, private equity houses and specialist lenders.
Paragon is a pioneer in the use of securitisation in the UK mortgage market, launching the UK's first residential mortgage-backed securitisation in 1987. To date, the Group has issued 56 public securitisations, raising over £20 billion.
Authorised offerors
About the bonds
1. The bonds may not be suitable for all investors. Investors should ensure they fully understand the risks and seek independent financial advice.
2. Investors should note that the market price of the bonds can rise and fall during the life of the investment and the price of the bonds could fall below the issue price of £100.
3. In the event that Paragon defaults, becomes insolvent or goes out of business, investors may lose some or all of their investment.
Disclaimer
This announcement is an advertisement and is not a prospectus for the purposes of EU Directive 2003/71/EC, as amended, and/or Part VI of the Financial Services and Markets Act 2000 (the "FSMA"). A base prospectus dated 11 February 2013, as supplemented on 8 January 2014, (together, the "Prospectus") has been prepared and made available to the public as required by Part VI of the FSMA. Investors should not subscribe for any bonds referred to in this announcement except on the basis of information in the Prospectus. Full information on The Paragon Group of Companies PLC and the offer of the bonds is only available on the basis of the combination of the Prospectus, the Final Terms and this announcement which have been published by Paragon on the Regulatory News Service operated by the London Stock Exchange.
The restriction on financial promotions contained in section 21(1) of the Financial Services and Markets Act 2000 does not apply to this announcement by virtue of article 70(1A) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended.
The offering and the distribution of this announcement and other information in connection with any offer in certain jurisdictions may be restricted by law and persons into whose possession this announcement or any document or other information referred to herein comes should inform themselves about and observe any such restriction. Any failure to comply with these restrictions may constitute a violation of the securities laws of any such jurisdiction.
This announcement does not constitute or form part of any offer or invitation to sell, or any solicitation of any offer to purchase. Any purchase of bonds pursuant to any offer should only be made on the basis of the information contained in the Prospectus, available as described above.
The bonds have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the "Securities Act"). Subject to certain exceptions, the bonds may not be offered, sold or delivered within the United States or to, or for the account or benefit of U.S. persons. The bonds are being offered and sold outside of the United States in reliance on Regulation S of the Securities Act. There will be no public offering in the United States.
