Paragon launches 6.125% sterling bond

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."