The buy-to-let lender confirmed that it secured its funding with valid acceptances of 258,075,437 new ordinary shares which represented 90 per cent of the total number offered to shareholders, followed soon after by news that the remaining 10 per cent had been sold to shareholders.
Its shareholders have agreed to undertake a discounted rights issue to repay Paragon’s £280 million corporate facility by the end of the month.
In accordance with the arrangements set out in January prospectus, UBS has secured subscribers for the remaining shares for which valid acceptances were not received.
Any premium over the aggregate of the Rights Issue Price of £1 per share and the expenses of procuring subscribers will be paid to shareholders that have not taken up their entitlements pro rata to their lapsed provisional allotments, provided that individual amounts of less than £5 will not be paid to such persons but will be retained for the ultimate benefit of Paragon.
Neither the underwriter nor the sub-underwriters will be required to subscribe for any shares under the terms of the underwriting and sub-underwriting arrangements, allaying firms that UBS would be saddled with the surplus.
Paragon chief executive Nigel Terrington claimed that it and UBS had extensive dialogue with shareholders throughout the process.
Paragon chairman Bob Dench, commented: “The full take up by the directors of their rights is a strong vote of confidence in Paragon and reflects their conviction as to the value inherent in the company.”