26th Apr 2018 17:55
LONDON (Alliance News) - Paragon Banking Group PLC said on Thursday it has completed a GBP724.7 million securitisation.
The arrangers and joint lead managers were Lloyds Bank PLC, Morgan Stanley & Co International PLC, with Merril Lynch International also acting as a joint lead manager.
The final terms include: GBP600 million of class A notes priced at 65 points over three month LIBOR of which GBP225 million was retained by an unnamed Paragon company; GBP33.5 million of class B notes priced at 95 points over three month LIBOR of which GBP1.7 million was retained by another unnamed Paragon company;
GBP30 million of class C notes priced at 130 points over three month LIBOR of which GBP1.5 million was retained by a Paragon company; GBP24.7 million of class D notes priced at 160 points over three month LIBOR which was retained by a Paragon company; GBP17.6 million of class Z notes retained by a Paragon company; and GBP18.9 million of class S/SVFN notes retained by a Paragon company.
Chief Executive Nigel Terrington said: "This is Paragon's first securitisation as a banking group and a return to the market following an absence of over two years. We are delighted with the result of this transaction, which is Paragon's largest securitisation since 2008 and at the lowest cost. The positive market reception is testament to the quality of Paragon's mortgage assets and the group's position as one of the leading issuers in the UK securitisation market."
Shares in Paragon closed down 0.3% at 511.00 pence each.
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