Signet Jewelers (NYSE:SIG) announces the completion of the final phase of its strategic outsourcing of credit through the sale of its existing non-prime receivables and implementation of a forward flow purchase arrangement for future non-prime receivables with funds managed by CarVal Investors and Castlelake, L.P.
The deal sees Signet sell 70% of its existing non-prime receivables to funds managed by CarVal Investors and the remaining 30 percent to funds managed by Castlelake, L.P. CarVal and Castlelake will also purchase newly originated receivables arising from Signet’s non-prime accounts at a discount rate as determined in the agreements. Signet received $445.5M in cash proceeds from the sale of existing non-prime receivables excluding transaction costs, net of a 5 percent holdback.
The company says the deal helps it to transition to a fully outsourced credit structure, while maintaining a full spectrum of category-leading financing and lease options for consumers.
SIG -0.01% premarket to $55.01.
Source: Press Release
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