Completion of securitisation
The Paragon Group of Companies PLC ("Paragon), is pleased to announce that a special purpose vehicle, Paragon Mortgages (No.19) PLC ("PM19"), has today completed a £350 million securitisation transaction consisting of buy-to-let and other residential mortgages.
The notes issued by PM19 comprise:
- £313.2 million of Class A notes at a margin of 85 basis points over three month GBP LIBOR
- £15.8 million of Class B notes at a margin of 120 basis points over three month GBP LIBOR
- £14.0 million of Class C notes at a margin of 160 basis points over three month GBP LIBOR
- £7.0 million of Class D notes retained by a Paragon Group company.
A Paragon Group company provided a £10.5 million First Loss Fund.
Commenting on the completion of PM19, Paragon's Chief Executive, Nigel Terrington, said: "We are delighted to complete our £350 million transaction today. The improvement in the pricing reflects the quality of our buy-to-let assets and we have seen our bond investor base growing further. We were also pleased to include in the transaction funding for £67 million of mortgages following the call of the notes of another securitisation, First Flexible No. 4 PLC, allowing us to refinance these loans at an improved cost of funding and with a lower level of credit enhancement."
Paragon will be announcing its half-year financial results for the six months to 31 March 2014 on Tuesday 20 May 2014.
For further information:
John Gemmell, Company Secretary, tel: 0121 712 2075
