JGWPT makes $123 million payment on credit agreement via IPO proceeds

By Toni Weeks

San Luis Obispo, Calif., Dec. 9 - JGWPT Holdings Inc. indirect subsidiary Orchard Acquisition Co. LLC made a $123 million repayment on its credit agreement due February 2019 with proceeds from its initial public offering, which priced on Nov. 8, according to a press release and an 8-K filing with the Securities and Exchange Commission.

The company made the repayment in connection with an amendment on its credit facility, which reduced the applicable margin on initial term loans to 600 basis points from 750 bps, changed the interest rate floor to 2% from 1.5% and modified the call protection terms. The repayment transaction was made without any prepayment premium, the filing noted.

The amendments are effective Dec. 6.

"Based on current market conditions, the repricing represents a reduction in interest expense of 200 bps and, when combined with the paydown, is expected to reduce annual cash interest payments by approximately $20 million," chief financial officer John Schwab said in the release.

Credit Suisse Securities (USA) LLC and Jefferies Finance LLC were joint lead arrangers for the repricing.

JGWPT is a Radnor, Pa.-based buyer of deferred payments and illiquid financial assets.

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