Creditrust Corp. said this week that it has completed a $30 million warehouse financing with Banco Santander.
The Baltimore manager and collector of delinquent consumer receivables plans to use the proceeds of the off-balance-sheet transaction to acquire additional accounts.
The financing bears interest at a floating rate of 65 basis points over the London interbank offered rate, currently 6.2%. (Warehouse credit is temporary funding for deals that have not been delivered to their final investor.)
The transaction, which was structured by Rothschild Inc., calls for interest-only payments for the first six months, followed by an expected 24-month amortization.
Though Creditrust said it plans to take out the financing's notes with a securitization, that is not a condition of the deal.
Standard & Poor's gave the transaction an AA rating.