Specialist buy-to-let lender Paragon has declared it is willing to launch an emergency underwritten rights issue on the back of continued credit crunch concerns.
Through a standby agreement with UBS, Paragon can launch a rights issue up to £280m, until 27 February next year. The company’s share price has plummeted on this morning’s announcement, falling 44.43% to 113.5p. In a statement to the stock exchange, the lender confirmed it will not pay a final dividend as a result of the rights issue possibility. “The current environment, whilst immensely disruptive, is driven by market-wide funding concerns and the actions taken by the group will ensure that the embedded value in the business is protected whilst providing a base for future profitable l...
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