JG Wentworth Co (NYSE: JGW) Announces $110 Million Portfolio Asset Sale


In search for adequate liquidity, the management of JG Wentworth Co (NYSE: JGW) said it was in the process of looking for new ways to raise money. That came after the company announced $110.8 million in sales of a portfolio of assets including structured settlement, annuity and lottery payments. The transactions were done through a private placement format.

Two asset pools

JG Wentworth Co (NYSE: JGW) said that the $110.8 million sale it recently made comprised two asset pools. In the first pool, the company transacted assets worth $50.8 million on June 17 and that deal generated net cash of more than $18 million after the company had paid off related expenses, especially warehouse facility charges.

JG Wentworth Co (NYSE: JGW) said the second pool is worth $60 million and although the sale has been initiated, it will not close until 3Q2016. It seems the net cash from the second pool will be known after the transaction closes.

Favorable economic environment

JG Wentworth Co (NYSE: JGW) is making the $110.8 million asset sales at a time that the management considers to be a favorable economic period compared to when it last made a similar transaction.

Not only do prices appear favorable, but the company has also noted that it has multiple ways to sell assets to generate cash to boost its liquidity.

The assets recently sold were originated by JGW itself and also through Peachtree Financial Solutions companies.

Beyond ABS platform

JG Wentworth Co (NYSE: JGW) is looking to raise additional funds to strengthen its liquidity position through avenues other than its ABS platform, the management disclosed in a press release.

JG Wentworth’s asset sales is a way of raising additional funds without diluting shares and that should make investors more comfortable in the stock.

JG Wentworth Co (NYSE: JGW) 1Q2016 financials

JG Wentworth Co (NYSE: JGW) generated revenue of $66.6 million in 1Q2016 compared to $86.8 million in the comparable quarter a year ago. It suffered an EPS loss of $1.03.



  1. What is JGWE raising money for?
    They might be raising the money to (pure speculation);
    1. Buy Back Their Stock Shares
    Excellent Strategy!!!
    If this happens, and they announce that they are buying back their shares, it will drive the JGWE stock back up to extraordinary levels!!! Remember, they have to maintain a stock price of at least $1 be in good standing with the Stock Exchange.
    They only have, I believe, 5 million shares out there.
    Therefore, with 18.5 million dollars (what they made off this deal), they could easily buy back at least 50-75% of what is out there.
    While people are selling, you should probably start buying it cause it will be good.

    Note; This is just pure speculation and nothing written above should be used to encourage/discourage monetary decisions of buying/not buying said stocks. We are not responsible for anyone buying/not buying and gaining/losing money based on what is written (pure speculation) above. Thank you.

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