ATLANTA, GA--(Marketwire -08/03/12)- CompuCredit Holdings Corporation (CCRT) ("CompuCredit") today announced that it has sold its charged-off debt buying operations, Jefferson Capital, to Flexpoint Fund II, L.P. for $130.5 million, of which $10.8 million will be received by CompuCredit if certain performance targets are met by December 31, 2014.
"We are very pleased with the terms of this agreement as it provides us a very favorable return on our Jefferson Capital investment as well as capital that can be used for expansion of our point-of-sale retail consumer lending platform, auto lending platform and other businesses with long-term growth potential that provide attractive returns," said David G. Hanna, Chairman and CEO of CompuCredit. "We also are actively exploring other uses of the capital generated by this sale, including stock buybacks and dividends, as we remain committed to increasing shareholder value."
Raymond James acted as financial advisor to CompuCredit and Troutman Sanders LLP acted as its legal counsel.
CompuCredit is a provider of various credit and related financial services and products to consumers who are underserved by traditional financial institutions. For more information about CompuCredit, visit www.CompuCredit.com.
This press release contains forward-looking statements. These statements are based on current expectations, estimates and projections about the industry and markets in which CompuCredit operates, management's beliefs, and assumptions made by management. It is important to note that actual results could differ materially from those projected in such forward-looking statements. Forward-looking statements are not guarantees of future performance and involve certain risks and uncertainties that are difficult to predict. For a detailed discussion of these and other cautionary statements, please refer to CompuCredit's regulatory filings with the Securities and Exchange Commission for information and factors that may impact CompuCredit's performance.