CarVal Investors, LLC’s Acquisition of Signet Jewelers Limited non-prime in-house credit receivables


Simpson Thacher is representing Signet Jewelers Limited, the world’s largest retailer of diamond jewelry, in its announced sale of its non-prime in-house credit receivables to investment funds managed by CarVal Investors, LLC (“CarVal”), a leading global alternative investment fund manager, including a five-year committed forward flow purchase program for future originations.

This agreement, in conjunction with the previously executed prime credit transaction and strategic partnership with Alliance Data Systems Corporation, and the outsourcing of the servicing of the non-prime credit program to Genesis Financial Solutions, Inc., will complete Signet’s transition to an outsourced credit structure. The CarVal transaction is expected to close in the second quarter of Signet’s Fiscal 2019, subject to certain closing conditions.

Signet operates approximately 3,500 stores primarily under the name brands of Kay Jewelers, Zales, Jared The Galleria Of Jewelry, H.Samuel, Ernest Jones, Peoples and Piercing Pagoda. The company, led by Virginia C Drosos, Sebastian Hobbs and Michele Santana, in 2017 recorded $6.253 Billion Revenues.

The Simpson Thacher team includes Maripat Alpuche (Picture), Ben Schaye, Michael Ting and Todd Noelle (M&A).

Involved fees earner: Maripat Alpuche – Simpson Thacher & Bartlett; Ben Schaye – Simpson Thacher & Bartlett; Michael Ting – Simpson Thacher & Bartlett; Todd Noelle – Simpson Thacher & Bartlett;

Law Firms: Simpson Thacher & Bartlett;

Clients: Signet Jewelers Limited;

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Author: Ambrogio Visconti