Paragon Group Regulatory News (PAG)

3 August 2015

The information contained herein may only be released, published or distributed in the United Kingdom, Jersey, the Bailiwick of Guernsey and the Isle of Man in accordance with the applicable regulatory requirements. The information contained herein is not for release, publication or distribution in or into the United States, Australia, Canada, Japan, South Africa, the Republic of Ireland or in any other jurisdiction where it is unlawful to distribute this document. The Bonds (as defined below) may only be sold in Jersey in compliance with the provisions of the Control of Borrowing (Jersey) Order 1958.

Any offer for subscription, sale or exchange of the Bonds within the Isle of Man must be made (i) by an Isle of Man financial services licence holder licensed under section 7 of the Financial Services Act 2008 to do so or (ii) in accordance with any relevant exclusion contained within the Regulated Activities Order 2011 or exemption contained in the Financial Services (Exemptions) Regulations 2011.

This announcement is an advertisement and is not a prospectus for the purposes of EU Directive 2003/71/EC, as amended, and/or Part VI of the Financial Services and Markets Act 2000 (the "FSMA"). This announcement is not itself an offer for the sale of any Bonds. Investors should not subscribe for any Bonds referred to in this announcement except on the basis of information in the base prospectus dated 23 October 2014 (the "Base Prospectus") as supplemented by the supplemental prospectuses dated 5 February 2015 and 26 May 2015 (together with the Base Prospectus, the "Prospectus") and the final terms (the "Final Terms") in its final form which will be published by The Paragon Group of Companies PLC (the "Issuer" or "Paragon"). Before any Offer (as defined below) commences, copies of the Prospectus and the Final Terms will be made available to the public as required by Part VI of the FSMA.

This announcement is a financial promotion prepared by Paragon and approved by Barclays Bank PLC and Canaccord Genuity Limited (the "Lead Managers") solely for the purposes of section 21(2)(b) of the FSMA. Barclays Bank PLC (incorporated in England No. 1026167) whose registered office is 1 Churchill Place, Canary Wharf, London, E14 5HP, is authorised and regulated by the Financial Conduct Authority. Canaccord Genuity Limited (incorporated in England No. 1774003) whose registered office is 88 Wood Street, London, EC2V 7QR, is authorised and regulated by the Financial Conduct Authority.

No reliance may be placed on the Lead Managers for advice or recommendations of any sort. The Lead Managers makes no representation or warranty to you with regard to the information contained in this announcement. The content of this announcement is believed to be reliable but, in so far as it may do so under applicable law, the Lead Managers does not warrant or make any representation as to its completeness, reliability or accuracy.

The Lead Managers are acting for Paragon and are acting for no-one else in connection with any offer of Bonds and will not be responsible to anyone other than Paragon for providing the protections afforded to clients of the Lead Managers nor for providing advice in connection with any offer of Bonds or any other matter referred to herein.

THE PARAGON GROUP OF COMPANIES' INTENTION TO ISSUE STERLING BONDS

Paragon, the specialist buy-to-let and consumer finance group, today announces that it expects to proceed with an offer (the "Offer") of Sterling bonds (the "Bonds"). 

About The Paragon Group of Companies PLC

· Paragon is a leading buy-to-let mortgage lender, a consumer loans provider and a specialist purchaser and servicer of loan assets

· As at 31 March 2015, it had approximately £10.5 billion in loan assets under management

· Paragon has three principal operating segments:

o Paragon Mortgages is one of the longest established lending brands in the buy-to-let mortgage market. Alongside its sister brand, Mortgage Trust, Paragon Mortgages maintains a significant presence for Paragon in this growing sector of the UK mortgage market. Total loan assets of the segment at 31 March 2015 were £8,993.5 million of which £8,749.2 million were buy-to-let mortgage assets.

o Idem Capital has established itself as one of the top consumer debt buyers in the UK, actively maintaining its strong relationship with the major UK based consumer debt sellers. In addition to assets acquired in its own right, Idem Capital services loans for third parties and for co-investment partners. The outstanding value of Idem Capital's investments at 31 March 2015 totaled £406.9 million.

o Paragon Bank was established in 2014 and provides Paragon with diversification of both income streams and funding sources, operating in the car finance, secured personal loan, buy-to-let mortgage markets funded by retail savings products.

· Rated BBB- (stable) by Fitch Ratings Ltd

· Paragon has previously issued bonds on two separate occasions on the London Stock Exchange's electronic Order book for Retail Bonds totaling £185m

Offer Highlights

· The Bonds are expected to have a maturity of between 8 and 10 years

· The Bonds are expected to be listed on the Official List of the UK Listing Authority and admitted to trading on the regulated market of the London Stock Exchange

· The Bonds are also expected to be eligible for the London Stock Exchange's electronic Orderbook for Retail Bonds

· The Offer is expected to take place in the coming weeks

· The minimum application size is expected to be £2,000

· The Offer is expected to comprise of an offer to retail investors in the UK, the Channel Islands and the Isle of Man and an offer to institutional investors (in the UK and elsewhere outside the United States under Regulation S)

There are risks related to the investment in bonds. Independent professional advice should be sought in relation to the expected Offer of the Bonds. Please also see "Important Information" below

For further information, please contact:

Paragon

Nigel Terrington, Chief Executive +44 (0) 20 7786 8455

Richard Woodman, Finance Director

Deborah Bateman, External Relations Director

Fishburn

Paul Farrow +44 (0) 20 7092 2302

Del Jones +44 (0) 20 7092 2313

Barclays Bank PLC

Toby Croasdell +44 (0) 20 7773 8727

Dan Fairclough +44 (0) 20 3134 8618

Tom Burgess +44 (0) 20 3134 9089

Canaccord Genuity

Adrian Bell +44 (0) 20 7523 8000

Mark Glowrey

Henrietta Podd

IMPORTANT INFORMATION

The offering and the distribution of this announcement and other information in connection with any offer in certain jurisdictions may be restricted by law and persons into whose possession this announcement or any document or other information referred to herein comes should inform themselves about and observe any such restriction. Any failure to comply with these restrictions may constitute a violation of the securities laws of any such jurisdiction.

This announcement does not constitute or form part of any offer or invitation to sell, or any solicitation of any offer to purchase. Any purchase of Bonds pursuant to any offer should only be made on the basis of the information contained in the Prospectus and the Final Terms, available as described above.

 The Bonds have not been and will not be registered under the US Securities Act of 1933, as amended, (the "Securities Act") and, subject to certain exceptions, may not be offered, sold or delivered within the United States or to, or for the account or benefit of U.S. persons. The Bonds are being offered and sold outside of the United States in reliance on Regulation S of the Securities Act, and are subject to certain U.S. tax law requirements. There will be no public offering in the United States.