Paragon, the specialist buy-to-let mortgage lender, said it was confident about the take-up of its rights issue, which closes this week. Financial Times
Paragon is the first UK mortgage lender to undertake a hugely discounted rights issue, which has been fully underwritten by UBS, because of the credit squeeze. Shareholders agreed the issue last month to repay Paragon’s £280m corporate facility by the end of this month.
There has been speculation that the share price fall in Paragon in the past week could mean UBS ends up with unwanted stock if the rights issue is undersubscribed.
The rights issue was offered at a 90% discount to the then share price but since then the shares have fallen further to just above the 100p issue price. On Friday, they closed at 102p.
Nigel Terrington, chief executive, said yesterday that feedback from investors 'suggests there will be a high take-up'.