CompuCredit Corporation announced Friday it has secured an additional $275 million of receivables financing facilities through four existing relationships. Bank of America, N.A. provided a $100 million increase to its existing facility, First Union National Bank added $75 million to a similar facility, and Barclays Capital, the investment banking division of Barclays Bank, PLC, and SunTrust Equitable Securities Corporation, the investment banking affiliate of SunTrust Banks, Inc., each provided increases of $50 million to similar facilities.
“These facilities allow CompuCredit to continue its dynamic receivables growth at competitive commercial paper rates,” said David Hanna, chief executive officer of CompuCredit Corporation. “We continue to add 20,000 to 25,000 new Aspire Visa cardholders to our client list each week, making CompuCredit one of the top 10 credit card issuers in terms of net new account growth. We believe that the increases to these securitization facilities is a validation by the capital markets of our proprietary modeling technology and marketing execution.”
CompuCredit Corporation is a credit card company that uses technology based analytical techniques it has developed to identify credit-worthy consumers who it believes are not currently being served by more traditional consumer credit providers. CompuCredit markets Aspire Visa credit cards to these consumers on an unsecured basis through traditional channels such as direct mail and telemarketing, as well as through its Internet marketing services subsidiary, AspireCard.com, Inc. CompuCredit also markets life insurance, card registration, telecommunication products, membership in buying clubs and travel services to its cardholders. Aspire Visa cards are issued by Columbus Bank and Trust under an agreement with CompuCredit. CompuCredit completed its initial public offering in April 1999. CompuCredit was included in the Russell 2000(R) Index in July of 1999.