One of the leading US debt management and recovery firms, Encore Capital Group Inc had announced today the finalization of its 50.1% equity interest in Janus Holdings Luxemborg. Janus Holdings is an indirect holdings form of Cabot Credit Management Lrd.
The remaining 49.9% of Janus Holdings is currently held by a fund under the advisory of JC Flowers and Co. The transaction was originally made public back in May 30, 2013.
The terms of the acquisition agreement stipulate that Encore obtains its interest in CCM for the consideration of GBP115 million or US$177 million. This price represented a discount of GBP13 million from the original GBP128 million resulting from the agreement to redeem bridge preferred equity certificates by JC Flowers. On the other hand, Encore has the right to buyout Janus Holdings between the fourth and sixth years after the closure of the sale,
According to Encore's CFO Paul Grinberg, "The Bridge PECs redemption allows Encore to reduce the amount of capital required to fund the deal, which should improve Encore's IRR and overall return on this transaction."
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