SquareTwo Improves Financial Operating Structure
SquareTwo Financial, a provider of asset recovery and management services, said the company has improved its capital structure with a two-year extension and lower interest rate on its revolving credit facility.
“Since the time of our recapitalization three years ago, we have solidified our position as a leader in the asset recovery and management industry,” said Paul A. Larkins, SquareTwo Financial’s president and CEO.
“Today SquareTwo Financial is a highly competitive, creative, firm that is operating efficiently, and delivering strong bottom line results. This tangible success is helping us further reduce the cost of doing business,” Larkins added.
SquareTwo Financial secured nearly $500 million in financing in 2010 through the sale of Senior Secured Second Lien Notes and the revolving credit facility. The revolving credit facility has been extended by two years and will now mature in April of 2016. In addition, the interest rate has been reduced by 1% for all applicable margins and 0.5% on the floors, which is expected to save the company more than $2 million per year.