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Disability Law

: Beyond Structured Settlements

J.G. Wentworth - 1

By Patrick Hindert

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J.G. Wentworth, the leading structured settlement factoring company, has been featured in news reports and announcements this past week.

Article posted November 28, 2008 by Joseph N. Distefano on the philly.com website:

"Standard & Poor's cut counterparty and senior-secured bank loan ratings on J.G. Wentworth Inc., the Bryn Mawr "structured settlement" firm that buys insurance payouts, to 'CCC+' from 'B-', and warned it could cut again. "Wentworth's financial position could deteriorate further unless it receives additional capital to meet margin calls, fund structured settlement/annuity purchases, and pay fixed obligations," due to "severe dislocation of the credit markets" that have "rendered unprofitable" some financing transactions, said S&P analyst Rian M. Pressman in a statement."

"Wentworth received an additional margin call of $16.9 million on Oct. 22, 2008, the payment of which was waived until Nov. 21, 2008. The payment has not yet been made," S&P added. Wentworth makes most of its money by selling asset-backed securities. Because such asset-backed transactions are tough to make in the current market, Wentworth has been reporting losses, S&P said. Wentworth is owned by New York investment firm JLL Partners. "

JGW Interim Announcement
Distributed December 5, 2008

"Today J.G. Wentworth priced $74.6 million of Class A-1 Notes in connection with its 2008-3 securitization. The Class A-1 Notes were priced at 700 bps over benchmark interest rate swaps and will have ratings of Aaa and aaa by both Moody's and A.M. Best, respectively.

"The transaction is scheduled to close December 16, 2008 and is intended to provide the necessary proceeds to satisfy one of the conditions under the November 28, 2008 margin call waiver agreement with Deutsche Bank to reduce warehouse loan indebtedness by $50 million."

S2KM will continue to report on financial and market developments impacting J.G. Wentworth, other structured settlement companies including AIG, and the structured settlement industry in general.

Full post as published by Beyond Structured Settlements on December 06, 2008 (boomark / email).