Collins Financial Services USA, a purchaser, collector and reseller of charged-off consumer debt, announced today that it has received debt financing from LBC Credit Partners, a mezzanine fund that provides privately negotiated loans to middle market businesses.
The funding will be used to support the companys portfolio growth by capitalizing on the favorable purchase opportunities currently available in the market.
Over the last two years, Collins has continued to position itself as one of the leading debt buyers in the industry. The company has strengthened its management team, invested in industry leading technologies and analytical tools, improved its operational efficiency and now has further strengthened its balance sheet to fund new portfolio purchases . These initiatives have allowed the company to achieve strong revenue and profit growth in 2008 despite the challenging macro economic environment.
Robert DiGennaro, chief executive officer of Collins Financial, said, We are pleased to have secured this funding at a time when it is extremely difficult to obtain any form of new financing. This additional capital positions Collins for continued profitable expansion, and will enable the company to significantly grow its business over the next several years. There are clearly attractive opportunities for well-funded purchasers of unsecured consumer debt from the nations top credit card issuers and Collins is well-positioned in this environment. Along with the rest of the Collins leadership team, I am excited about the companys future prospects and believe the commitment from LBC Credit Partners is a strong validation of our business model and growth potential.
In additional to the debt funding from LBC Credit Partners, Collins has a credit facility with the Lender Finance unit of Wells Fargo Foothill, part of Wells Fargo's Collins Financials majority owner is Brazos Private Equity Partners.