The Paragon Group of Companies Plc has embarked upon a new securitisation.

The joint lead managers for Paragon Mortgages (No.17) PLC (PM17) are Lloyds Bank, Macquarie Bank Limited and Morgan Stanley.

The final terms of PM17 will be determined following discussions with the joint lead managers and investors.

The issue amount is £200 million, comprising:

• £175.0 million of AAA rated notes at a margin of 135 basis points over three-month LIBOR
• £10.5 million of AA rated notes at a margin of 190 basis points over three-month LIBOR
• £10.0 million of A rated notes at a margin of 290 basis points over three-month LIBOR
• £4.5 million of subordinated notes retained by Paragon
• Paragon will also invest £6 million in the First Loss Fund, which will bring its total investment in PM17 to £10.5 million, or 5.25% of the issue amount

This securitisation will support Paragon’s on-going new lending programme.