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 sha...
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