Paragon and Precise complete securitisations

Sarah Davidson

July 17, 2015

The Paragon deal was valued at £300.15m, included both sterling and euro denominated tranches and was led by Lloyds, Macquarie, Morgan Stanley and Natixis.

The sterling tranche level was priced 30bps wide of the lender’s previous securitisation in March 2015, reflecting uncertainty around the Greek bailout situation in Europe.

The Precise AAA-rated deal was successfully sold in its entirety and was valued at £180.4m. The specialist lender also priced its senior tranche 30bp wide of the comparable tranche of its most recent offering, at 125bp over three month sterling Libor.

Alan Cleary, managing director of Precise, said: “The reason that we became a bank was very simple: one of the biggest lessons we took from the financial crisis was that capital markets can – and will – be unpredictable and if you have only one source of funding it is very difficult to build a sustainable business.

“That being said, now that Grexit appears to have been averted we were very happy to be the first lender to get a deal done.”

Precise retained 5% of the notes “randomly selected” from various parts of the deal.

Bank of America Merrill Lynch, JP Morgan and Lloyds were joint leads, with JP Morgan acting as sole arranger.

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