WPP, Paragon raising funds

2nd Nov 2011 14:19

Acquisitive advertising conglomerate WPP is looking to raise funds through a bond issue, and is offering existing bond-holders the opportunity to exchange old for new.The company has announced a private cash offering of new 10-year senior notes, due 2021, and plans to offer to exchange up to $450m of existing WPP 5.875% senior notes, due 2014, for the new notes.Meanwhile, buy-to-let mortgage specialist Paragon continues its resurrection with plans to securitise around £150m of its mortgage book to raise fresh funds to lend out to landlords.The final terms of the securitisation will be determined following the usual discussions between the lead managers and investors, the company said, but it is currently expected that pricing will be at around two-and-three-quarters of a percentage point over the three month London Interbank Offered Rate.