MCM Capital Group recently announced it closed a $29 million securitization backed by consumer receivables in a private placement sold to institutional investors.
In addition, the company also secured $10 million in funds through the sale of senior notes to ING Barings. Those notes carry a coupon of 12% and feature a guarantee from Midland Credit Management Inc. It also issued warrant to acquire up to 528,571 shares of common stock at a price of $0.01 cents a share.
The notes, which are insured by Asset Guaranty Insurance Co., received a rating of double-A from Standard and Poor's Ratings Service. It carries a coupon of 9.63%
"We are pleased to complete our second securitization in a little over twelve months and to secure additional long-term financing for our company. These transactions should help us to advance our plans for this year," said Robert E. Koe, MCM's president and chief executive officer, in a prepared statement.
As of 1999, the company has been actively increasing the amount of receivables purchased directly from credit card issuers before third party collection agencies have been engaged by the issuer to service the receivables, according to a recent earnings report.
It announced a forward-flow agreement with a subsidiary of MBNA Corp. to purchase certain charged off credit card receivables late last year.
Based in Hutchinson, Kan., MCM Capital Group, Inc. acquires and collects distressed consumer receivables.