23rd Jan

Para gone! Buy-to-Let Lender Impresses as Retail Bond Closes Early

Britain's largest specialist buy-to-let mortgage lender and consumer finance group Paragon has closed the offer period for its latest retail bond early following a “very positive” response from investors. 

At the time of the launch of the bond on 14th January, Paragon Chief Executive, Nigel Terrington, was bullish about the prospects for the Group following its achievement of £100m of profits for the first time in 2013 and in light of encouraging signs from the housing market and the prospect of a return to consumer lending. 

When pushed for an objective for the issue, Mr Terrington said that no target figure had been set for what is the second issue by the Group, but suggested that a similar figure to the £60m raised by the first ‘is in our minds and would be a good target level to get to’.      

Target more than doubled

In fact, the issue raised more than double that figure, raising £125m by offering unsecured notes with a coupon of 6.125% and a maturity date of January 2022. 

In clear testimony to demand from retail investors and the increasing attraction of the ORB market, the offer period closed at 10am today (23rd January), well ahead of the scheduled close at 5pm on 27 January. 

Mr Terrington, said: “We are delighted with the success of our second retail bond. We have received a very positive response from investors demonstrating the attractiveness of Paragon and the growth opportunities for our business. This bond complements our already strong balance sheet, allows us to diversify our funding base and extend the tenor of our debt maturities.” 

The FTSE 250 group posted record profits of £105m in its end of year report, which was published in November 2013.  

This morning its shares were up 0.6% at 358p

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