23rd Sep 2013 11:57
LONDON (Alliance News) - The Paragon Group of Companies PLC Monday said it completed a GBP273 million securitisation transaction consisting of buy-to-let assets.
The securitisation transaction consists of GBP238.1 million of AAA rated notes at a margin of 115 basis points above the London interbank offered rate; GBP15.7 million of AA rated notes at a margin of 170 basis points over three month Libor; and GBP13.7 million of A rated notes at a margin of 240 basis points over three month Libor.
Paragon said it made the transaction through Paragon Mortgages (No. 18) PLC, a special purpose vehicle. It retained GBP5.5 million of subordinated notes and invested GBP8.2 million in the First Loss Fund, which brings its total investment in the PM18 vehicle to GBP13.7 million, or 5% of the issue amount.
"PM18 marks further progress in Paragon's buy-to-let funding strategy. This deal is particularly positive as we have increased our transaction size, reduced pricing and we have broadened our investor base," Nigel Terrington, chief executive, said in a statement.
"We are seeing positive improvements generally in the buy-to-let market following renewed confidence from landlords and we will continue to grow this area of the business in the next 12 months," Terrington added.
The transaction comes after the company said on July 30 that it would continue growing its buy-to-let loan book.
Paragon Group of Companies shares were Monday quoted at 313.60 pence, down 1.1 pence.
By Samuel Agini; [email protected]; @samuelagini
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