Paragon secures EUR €585 million to fund global growth & tech

Paragon has completed a €585 million refinancing deal intended to support its plans for global expansion and technological investment. The business services company finalised the transaction with the stated objective of entering new geographic markets and advancing its AI and cloud-based offerings to customers.

Capital details

The refinancing is made up of two parts: a €450 million bond issued on the Eurobonds market, and a €135 million revolving credit facility arranged with BNP Paribas, NatWest, HSBC, Barclays and Commerzbank. The firm's new bonds carry a B+ rating from both S&P and Fitch.

S&P referenced Paragon's position with large international clients in its rating rationale, while Fitch cited the company's revenue visibility as a positive factor. The bond matures in 2030 and, together with the revolving credit facility, provides Paragon with what the business describes as a more stable and flexible capital structure.

Growth focus

Paragon's leadership indicated that the refinancing will help the company pursue deals to support overseas expansion, particularly in the United States and the Middle East and North Africa. Funds will also be allocated to investment in new technologies aimed at efficiency and automation in customer services, data management, and fulfilment processes.

The capital is expected to allow Paragon to develop new AI and cloud-based products for highly regulated customers. The company is also planning to increase its capability in areas such as sustainability tracking and the automation of co-packing and fulfilment facilities, supported by the refinancing.

M&A strategy

Management stated that the €135 million revolving credit facility would add flexibility to the company's merger and acquisition approach. Planned acquisitions are expected to focus on bringing in additional capabilities and increasing Paragon's scale both in current markets and new territories outside Europe.

The company confirmed that its current executive team will continue to drive its international strategy. The refinancing follows a period of expansion from regional operations into a global presence with customers in the UK, Continental Europe, Middle East, and the United States.

Leadership perspectives

"We are no longer Europe's best-kept growth secret. The launchpad provided by this successful refinancing will help us do the deals that take us into new markets globally. It also helps us drive further development in our latest technology-enabled solutions to deliver growth and efficiency at new levels for our customers. This is a key moment in Paragon's success story," said Jeremy Walters, Chief Executive Officer, Paragon.

"This successful refinancing marks a pivotal moment for Paragon. The new capital structure provides a robust and flexible platform to continue to execute our global growth strategy and invest in further innovation. We are grateful for the continued support of our relationship banks and to new bond investors for validating the market opportunity available to Paragon," said Martin Edstrom, Chief Financial Officer, Paragon.