Paragon Seeks $560 Million in Discounted Rights Issue

British buy-to-let mortgage lender Paragon announced a deeply-discounted, fully underwritten rights issue on Friday to raise 287 million pounds ($560 million).

The firm said shareholders would get the right to buy 25 new shares for each one they own following a share consolidation of 1 new share for every 10 existing shares.

It said this represented a 90.2 percent discount to Thursday's closing share price of 102 pence.

The rights issue is being underwritten by UBS.