Paragon Banking Group PLC PM12 Notice: First Loss Fund Reduction (4759T)
15 Noviembre 2019 - 3:30AM
UK Regulatory
TIDMPAG
RNS Number : 4759T
Paragon Banking Group PLC
15 November 2019
PARAGON BANKING GROUP PLC
15 November 2019
PM12 Notice: First Loss Fund Reduction
On 26 June 2019, Paragon Banking Group PLC ("Paragon") disposed
of its residual interests in the Paragon Mortgages (No 12) PLC
("PM12") mortgage securitisation, comprising the following:
-- The Subordinated Loan used to establish the First Loss Fund in the PM12 Transaction Account
-- The right to receive Deferred Consideration in respect of the
mortgages in accordance with the PM12 pre and post enforcement
priority of payments
The Paragon residual interests were assigned to a newly
established orphan SPV, Residual Interest Paragon Mortgages (No 12)
PLC ("RIPM12").
For further information, please refer to (i) the PM12 RNS
release on 26 June 2019 and (ii) the Paragon RNS release on 27 June
2019.
https://www.paragonbankinggroup.co.uk/resources/paragongroup/documents/spvannouncements/mortgages/280619-pm12-noticetonoticeholders
https://otp.tools.investis.com/clients/uk/paragon_group/rns1/regulatory-story.aspx?cid=1285&newsid=1303174
A provision in the PM12 transaction documents permits a
reduction in the First Loss Fund, subject to consultation with the
Rating Agencies and confirmation that the current ratings of the
Notes can be maintained. Paragon Finance PLC, as the Administrator
on behalf of PM12, has concluded such a consultation consequent to
which an GBP8,000,000 reduction to the PM12 First Loss Fund and a
corresponding partial repayment of the amended and restated PM12
Subordinated Loan will occur on the PM12 Interest Payment Date
falling on 15 November 2019. The current balance of the PM12 First
Loss Fund balance on the latest PM12 Interest Payment Date will be
reduced to GBP20,504,000, equal to 3.08% of the asset balance,
versus 1.9% on the 2006 closing date. This will be detailed in the
PM12 investor report for the quarter ending 31 October 2019 on the
bond investor reporting section of the Paragon website to be
released on or around 22 November 2019.
The First Loss Fund reduction reflects the continued exemplary
performance of the Paragon originated pre-crisis buy to let
mortgage assets supporting PM12's liabilities since the July 2006
closing date.
For further information contact:
Pandora Sharp
Company Secretary
Tel: 0121 712 2075
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END
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