U.K. buy-to-let lender Paragon has announced a GBP287 million ($563 million) rights issue, which would repay the company's GBP280 million working capital facility due on Feb. 27. Aside from improving its financial situation, the firm can also avoid the penalty interest rates that its financiers were proposing through this offering.

"The fact that they are pursuing the rights issue suggests that the terms offered to renew the existing working capital facility were unattractive," Royal Bank of Scotland analysts said.

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