Buy-to-let specialist Paragon has secured a £200m facility with Macquarie Bank that will allow a resumption of mortgage lending for the first time since February 2008. The funds will cost 2.875 percentage points above the London interbank offered rate (Libor) which currently stands at 0.73 per cent, and will allow Paragon to set up a revolving warehouse facility.
IC TIP:
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at
173p
This means that mortgages will be taken off the balance sheet and used as collateral to raise funds to repay the facility, thus freeing up the funds for a further round of lending.
Paragon also expects profits for the year to 30 September to be at the upper end of expectations, which range from £40.5m to £65m.
When: 02/09/10
Price: 141p
Performance to date: +23%
