Lexicon United Inc., an Austin, Texas-based financial services holding company, said its Brazilian subsidiary that specializes in debt collections, ATN Capital e Participacoes Ltd. (ATN), has acquired a portfolio of distressed debt assets of Banco do Brasil SA with a face value of 498.7 million reals (or about U.S. $305 million) from Ativos S/A Securitizadora.
The terms of the purchase were not disclosed.
"This portfolio comprises past-due and unpaid debt payable by more than 41,000 clients. The acquisition of this portfolio marks the first time ATN has acquired a portfolio of debt assets for its own account as differentiated from acting as a servicing agent for collections on behalf of a third party," Elie Saltoun, Lexicon president and CEO, said in a statement.
Lexicon was founded in 2001 and acquired ATN in February 2006. ATN has been in operation since April 1997. It manages and services accounts receivables for large financial institutions in Brazil, according to Lexicon's regulatory filings.
Charged-off receivables accounted for about 99% of Lexicon/ATN's business last year, while semi-performing and performing receivables each accounted for less than 1% of its business in the period.
ATN is operated by managing partners Omar Malheiro Silva Araujo, who formerly worked for Unibanco Visa and Chase; and Manuel da Costa Fraguas, who also spent portions of his career with Unibanco and Chase.
Lexicon United had 2007 revenues of $2.83 million and a net loss of about $135,000, according to SEC filings