CompuCredit Purchases Credit Card Recievables from Barclays!
CompuCredit Corporation announced that it has purchased approximately $970 million (GBP 490 million) in face amount of Monument credit card receivables from Barclaycard, a division of Barclays Bank PLC.The purchase price was approximately $770 million (GBP 390 million). A substantial portion of the purchase price was funded through a traditional securitization financing arranged by Banc of America Securities Limited and related entities.
“We are pleased with this transaction as it advances our diversification and growth strategies and marks CompuCredit’s first international portfolio purchase,” said David G. Hanna, CEO and Chairman of CompuCredit.
Barclaycard is a multi-brand credit card and consumer loans business which also processes card payments for retailers and merchants and issues credit and charge cards to corporate customers and the UK Government. It is one of Europe’s leading credit card businesses and has an increasing presence in the United States.
CompuCredit Corporation is a specialty finance company and marketer of branded credit cards and related financial services. CompuCredit provides these services to consumers who are underserved by traditional financial institutions. Through corporate and affinity contributions focused on the underserved and un-banked communities, CompuCredit also uses its financial resources and volunteer efforts to address the numerous challenges affecting its customers.
My question is that with so much uproar lately about the subprime market why would you make this move. I know it has mostly been in the mortgage market but you would think some of that would carry over to the credit card sector as well. In my mind I find this a very sketchy purchase. Anyone else have any thoughts!