The Paragon Group, owner of specialist buy-to-let lender Paragon Mortgages, is seeking to raise £287m to pay some of its debt.
The firm is issuing rights through the stock exchange and consolidating its shares as part of the fundraising.
The firm says the proceeds of a rights issue, along with current cash reserves, will be used to repay a £280m revolving credit facility which matures on 27 February.
Once the revolving credit facility has been repaid, the firm will not have any debt maturing before 2017.
The firm says it is currently seeking new financing options to enable higher volumes of lending activity and will launch a new range of products once funds have been obtained.
The firm will also consolidate shares, offering one £1 share for ten existing 10p shares.
Robert Dench, chairman of Paragon, comments: “The Rights Issue announced today provides Paragon with financial stability and secures the value inherent in the Group today for its Shareholders.
“The Board believes the Rights Issue will provide Paragon with a platform from which it can pursue further funding, so the Company can return to writing significant volumes of profitable business when credit markets reopen.”
If you would like to comment on this story, contact:
Tel: 020 7034 2682
e-mail: [email protected]
Pension savers need to engage with their retirement options far earlier than is currently normal to ensure they save enough through their lifetime, according to a report from the Association of British Insurers (ABI).
The majority of financial advisers (85%) believe the number of self-invested personal pension (SIPP) providers will continue to fall in the coming year, according to Dentons Pension Management research.
Short-term noise or something sinister?
Royal ascent in May
Bought platform for £31m in 2016