Paragon Mortgages’ parent company, the Paragon Group, has completed its latest securitisation.
Paragon Mortgages No.20 (PM20) is the 58th securitisation deal completed by the Group and its third in the last 12 months. This new securitisation will support Paragon’s on-going new lending programme.
The final terms of the securitisation are as follows:
– £319 million of Class A Notes priced at 68 basis points over three month LIBOR
– £24 million of Class B Notes priced at 100 basis points over three month LIBOR
John Heron, managing director of Paragon Mortgages, said: “In May we reported a 163% increase in buy-to-let new lending for the first six months of the year and we are well-positioned for further growth in the coming months. With demand increasing for rented accommodation and buy-to-let mortgages, this improvement in the supply of well-priced funding will help us to continue to develop our product range for all types of landlords.”
Paragon’s chief executive, Nigel Terrington, added: “We are delighted to announce the completion of our latest securitisation, PM20, and also the intention to call PM16, which is now prefunded.
“We have seen a further improvement in pricing from our PM19 transaction in March 2014, reflecting the high quality of our buy-to-let assets. It was particularly pleasing to note that 91% of the funding is at AAA level, thereby minimising the average weighted cost of funds. The refinancing of PM16 is another marked step forward for the Group. It replaces PM16 funding at a margin of Libor +275 bps with funding at Libor +68 bps, together with the release of around £30 million of cash in October 2014 when PM16 is called.”
Since September 2013, Paragon has placed £953 million of Notes through its PM18, PM19 and PM20 transactions. The PM20 securitisation will support Paragon’s on-going new lending programme.