Paragon completes £1bn securitisation

Amanda Jarvis

March 24, 2006

This securitisation brings total issuance to over £14 billion.

Paragon Mortgages (No.11) PLC was offered in multi-currencies, aimed at attracting new investors into the securitisation programme.

The notes were issued in four tranches and were rated by Standard & Poor’s, Moody’s and Fitch. Class A1 notes at AAA were offered in US$, Class A2 notes at AAA in £, US$ and €, Class B notes at AA in £ and €, and the Class C junior tranche at A level in £ and €. The reserve fund in this transaction was 1.90 per cent, demonstrating the rating agencies’ continuing confidence in the Paragon Group originations and the performance of its assets.

The pool consists entirely of ‘buy-to-let’ mortgages. Paragon is in the increasingly important ‘buy-to-let’ market through its Paragon Mortgages and Mortgage Trust brands. The credit quality on all of Paragon’s ‘buy-to-let’ portfolios has been excellent.

Nick Keen, finance director at Paragon, commented: “We are delighted to have achieved our best ever pricing on this our 48th transaction, which brings our total issuance to more than £14 billion. Paragon was the first UK company to tap the mortgage-backed market some 18 years ago, and indeed we remain the most prolific issuer in terms of volume of transactions.

“This deal is denominated in Sterling, Euros and US dollars, and was well received by investors globally, reflecting the strong appetite both for the Paragon name and for UK buy-to-let assets.”

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