Cabot Financial  7.5% 01 Oct 2023

Business Description

Cabot Credit Management is a market leader in credit management services including debt purchasing, contingency collections, business process outsourcing and litigation. The Group encompasses four UK businesses including Cabot Financial, dlc, Apex Credit Management and Mortimer Clarke Solicitors (a specialist litigation law firm, authorised and regulated by the Solicitors Regulation Authority) and three European businesses Cabot Financial Ireland, Gesif and Nemo.

From its inception in 1998 to 30 June 2016, CCM has invested circa £1.9 billion in acquiring portfolios with a face value in excess of £20 billion. CCM has an ERC (estimated remaining collections) of £2.1 billion. It manages in the region of £1 billion of assets on behalf of clients, collects on average over £47 million per month on portfolios it either owns or services on behalf of clients, and has delivered a consistently strong financial performance, having grown its business in each of the last 18 years without exception.

The Group, which has purchased circa 8 million customer accounts, employs approximately 1,550 people with offices in Kings Hill, Brackley, Worthing, London, Dublin, Madrid, Paris, Lyon and Marseille. The company prides itself on its ethical values, customer service and high standards. It has an impressive list of accolades including:

  • Investors in People Gold and Champion awards
  • Treating Customers Fairly Award 2015 and 2016, Credit Strategy

The controlling shareholder of Cabot Financial is Encore Capital Group, an international speciality finance company providing debt recovery solutions. The remaining equity is held by a fund advised by J.C. Flowers & Co., in addition to company management.

Bond Information

Coupon

7.5%

Maturity Date

01 Oct 2023

Next Interest Payment

01 Apr 2020

Interest Period

6 months

ISIN

XS1405768596

Asset Security

First ranking charge over company assets

Amount

£350,000,000

Ratings

S&P:  BB-, Moody's:  B1

Call Schedule

01 Oct 2019 at 103.75
01 Oct 2020 at 101.875
01 Oct 2021 at 100

Status

Payments on time

* Current Yield and Yield to Maturity are on estimated return calculations and not guaranteed. All yields shown are gross of Taxation and our Service Fee.

Company Information

Industry

Banks & Financials

Country of Origin

UK

Year of Incorporation

1998

Ownership Status

Private

Capital Structure

Senior Debt 48%

Equity 52%

Cash

-1.2%

Senior Notes (combined)

6.2%

Content Liabilities

12.0%

Net Debt

17.0%

Equity

83.0%

Enterprise Value

100.0%

EDITDA

£883,000,000

Cash interest

£226,400,000

Source: Public Company information

* An asterisk next to an item indicates there is additional information available if you hover over it. You can also find a definition of the terms used on this page in our Glossary.

Based on 7.9x multiple paid by JC Flowers in 2013

Key Financials

Revenues

11,607

Growth %

38.1%

EDITDA

1,681

Margin %

14.5%

Cash balance

3,067

Source: Public Company information

Reports & Information

Throughout our site you will find links to external websites. Although we make every effort to ensure these links are accurate, up to date and relevant, we cannot take responsibility for pages maintained by external providers.

Throughout our site you will find links to external websites. Although we make every effort to ensure these links are accurate, up to date and relevant, we cannot take responsibility for pages maintained by external providers.

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