CBC Settlement Funding, LLC, Acquired by Asta Funding, Inc.
Conshohocken, PA Jan. 7, 2014 — Structured settlement financing company, CBC Settlement Funding, LLC (“CBC”), was acquired by Asta Funding, Inc. (Nasdaq:ASFI) (Asta), a financial services receivable asset management and liquidation company.
Asta acquired an 80% ownership interest in CBC Settlement Funding, LLC and its affiliate, CBC Management Services, LLC, for approximately $5.9 million. At the closing, the operating principals of CBC, namely William J. Skyrm, Esq. and James Goodman, were issued a 20% interest in CBC (10% to Mr. Skyrm, and 10% to Mr. Goodman). William J. Skyrm, Esq. and James Goodman, have over 30 years combined experience in the structured settlement industry.
CBC purchases periodic payments from structured settlements and annuities from individuals in exchange for a lump sum payment. In addition, the Company, through another subsidiary has agreed to provide financing to CBC of up to $5 million.
CBC has a portfolio of structured settlements with a present value of more than $30 million, which is financed by approximately $25 million of debt, including a $12.5 million line of credit from an institutional source and notes issued by CBC. The value of the future payments of the portfolio is over $44 million.
As Asta has acquired and managed charged off and non-performing receivables since its inception, and more recently has been financing personal injury claims, acquiring a structured settlement business is a further step in diversifying the their portfolio that utilizes the expertise developed over the last fifty years since the inception of its predecessor, Asta Group, Inc.
Gary Stern, Chairman, President and CEO of the Asta commented, “We are very excited about our investment in CBC Settlement Funding, LLC and the future prospects of the structured settlement space. Structured settlements are an asset class that has tremendous growth potential for us and is a synergistic business that works well with our overall business model.” Mr. Stern continued, “We welcome Bill Skyrm and James Goodman to the management team and look forward to working with them well into the future to further grow CBC Settlement Funding.”
Mr. Goodman commented, “It is an exciting time in the structured settlement space as the consumer need for liquidity has never been greater due to scarcity of consumer lending from traditional banks.” Mr. Skyrm continued, “The investment by Asta will allow CBC to accelerate our growth plans to increase market share. CBC will further benefit from Asta’s ability to access capital markets efficiently.”
Investment bank Bryant Park Capital acted as financial advisor to CBC. Law firm Cozen O’Connor represented CBC with the transaction.
About Asta Funding, Inc.
Asta Funding, Inc., is a leading consumer receivable asset management company, based in Engelwood, NJ, that specializes in the purchase, management and liquidation of performing and non-performing consumer and other receivables. For additional information, please visit our website at http://www.astafunding.com.
About CBC Settlement Funding, LLC.
CBC Settlement Funding, LLC is a Conshohocken, PA based purchaser of illiquid assets such as periodic structured settlement, annuity and pension payments. For more information, visit their website at http://www.cbcsettlementfunding.com
CONTACTS:
Robert J. Michel, CFO
Asta Funding, Inc.
(201) 567-5648
William J. Skyrm
CBC Management Services Group, LLC
(215) 542-2130