Arrow Global made £77m of organic portfolio purchases during the first three months of 2017, its results statement has revealed.
Of these purchases 56 percent originated in the UK, 22 percent in the Netherlands, 17 percent in Portugal and five percent in Italy.
Its results statement for the three months ending March 31, found the firm’s underlying profit after tax had increased by nearly 40 percent to £10.3m. However, the group posted a loss after tax of £11.7m, compared to a profit of £7.6m this time last year. Arrow said this includes post tax one-off costs associated with a re-financing in March 2017 of £22m.
Arrow officially entered the Italian market in April this year with the completed acquisition of Zenith Service S.p.A., which the firm said will enhance its mainland European capabilities. The debt purchaser also completed its first portfolio acquisition in Italy with a €4.8m investment in a portfolio of unsecured receivables.
For its refinancing, Arrow issued €400m of senior secured notes due in 2025, at a coupon of E+2.875 percent. The debt purchaser said this is a record low rate for financing in the industry.
The proceeds have been used to redeem Arrow’s existing €335m notes which were at a coupon of E+5.25 percent and due in 2021. Arrow has also used the proceeds to pay the early redemption fee and transaction costs and repay drawings under its revolving credit facility.
Lee Rochford, group chief executive of Arrow, said: “We continued to make progress on our strategic drive to diversify our revenue, with capital-light asset management revenues accounting for 24 percent of total revenues.
“A robust pipeline across our geographic footprint gives us confidence in our ability to meet earnings expectations for the year.”