Slaughter and May advised Arrow Global Group PLC (Arrow Global), a leading European purchaser and manager of debt portfolios, on the formalisation of a strategic origination and servicing partnership with CarVal Investors (CarVal). The formalisation of this partnership includes a five year agreement between Arrow Global and CarVal to jointly original Portuguese investments and the establishment of a formal five year servicing commitment with CarVal.
As part of the partnership with CarVal, Arrow Global will also acquire Whitestar Asset Solutions, a leading Portuguese servicer of secured and unsecured loans, from funds managed by CarVal for a total consideration of EUR 47.8 million payable over two years. This deal is expected to complete during April. CarVal has agreed to remain on the board of Whitestar for the duration of the formal strategic origination and servicing partnership.
Arrow Global also purchased EUR 565.6 million face value consumer loan portfolios for EUR 37 million, principally through the acquisition of securitisation notes referable to the underlying portfolios.
Arrow Global will finance the acquisitions from its existing resources. At the same time, Arrow Global has increased its 2019 revolving credit facility from £100 million to £140 million to provide headroom for future investment.
Slaughter and May supported Arrow Global's general counsel Stewart Hamilton and senior legal counsel Hannah Woodcock.