Please find research on the Paragon 6% 28/08/24 bond, which is currently in the ‘Offer Period’ before being listed on the London Stock Exchange.
Paragon Group of Companies Plc (“Paragon”) is a FTSE 250-listed company with market capitalisation of approximately £1.3bn. Founded in 1985, it is predominantly a Buy-to-Let specialist with smaller operations in consumer debt and banking.
The bond is senior, unsecured debt of Paragon and contains certain covenants including a gearing covenant and negative pledge in respect of the provision of security and subsidiary guarantees. The issue is rated BBB- by Fitch, making the issue investment grade and indicating that the issue is of good credit quality.
The bonds have a minimum investment of just £2,000 with multiples of £100 thereafter.
The Offer Period ends on 24th August but is likely to close early due to demand. Previous Paragon bonds have risen above par and are now yielding below the 6% coupon offered by this issue. That bodes well for investors and we rate the issue a strong buy.