Collection House (CLH:ASX) has now completed the second transaction under its partnership with global private investment firm Balbec Capital LP and its local related entity, InSolve Capital Australia Pty Ltd (collectively “Balbec”).
As previously advised at the half year results, this year’s Balbec transaction under the CLH Portfolio Enhance Programme (“PEP”) will result in the Company receiving $25 million up front unencumbered cash (FY18: $19.5m) in exchange for the assignment of five years’ cash flows from a $59.0 million segment of the Arrangement book (FY18: $39.5m). Collection House and Balbec have again entered into a put and call option agreement to repurchase the residual cash flows at the end of the term of the agreement, at a market price determined by the performance of the accounts.
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