DENVER, June 21 /PRNewswire/ -- SquareTwo Financial, a leader in the $40 billion asset recovery and management industry, today announces that the company has successfully completed a $475 million financing package. The money was raised from the sale of Senior Secured Second Lien notes and a new revolving credit facility.
In conjunction with the bond offering, SquareTwo Financial received a 'B' counterparty credit rating from Standard & Poor's and an equivalent B2 Corporate Family Rating from Moody's. The company's unique, franchise-based attorney network was a key factor to its favorable credit rating.
"The fact that we could raise nearly half a billion dollars with terms that support growth in what is still considered a challenging economic environment is a testament to our unique business model and our position in the industry," said Paul A. Larkins, president and CEO of SquareTwo Financial. "This is a clear vote of confidence in our ability to deliver consistent financial results."
Proceeds from the bond offering and the new revolving credit facility will enable SquareTwo Financial to roll out a comprehensive, multi-year strategic plan. The company intends to use the additional funds raised to pay off current debt and expand its business.
About SquareTwo Financial
SquareTwo Financial is a leader in the $40 billion asset recovery and management industry. Through its award-winning technology and unique Partners Network, SquareTwo Financial creates a more effective way for companies and consumers to resolve their debt commitments. Fortune 500 companies in the health care, automotive, banking and credit card industries trust SquareTwo Financial to manage their debt portfolios. The company's national network of legal partners is dedicated to treating consumers fairly and ethically. SquareTwo Financial is based in Denver, Colorado. Visit www.squaretwofinancial.com for more information.