Paragon acquires £56m of MBNA credit card debt

MORTGAGE and credit group Paragon has acquired a portfolio of closed UK consumer credit card receivables from MBNA Europe Bank Ltd in a transaction worth almost £56m.

The total consideration, which is being financed from Paragon’s cash reserves and which represents the value at which the acquired receivables will be taken on to the group’s balance sheet, is £55.7m.

Solihull-based Paragon said it expected the deal would be earnings enhancing within the current financial year.
 
Commenting on the acquisition, Nigel Terrington, chief executive of Paragon, said: “We are extremely pleased to announce a further significant portfolio acquisition through our investment division, Idem Capital.  

“This is the seventh portfolio that has been acquired by Idem and brings the total investment to date to £145.2m.  Portfolio acquisitions have become an increasingly important part of the group’s activities and Paragon’s track record of loan servicing, risk management and portfolio investments position it well to exploit similar opportunities as they arise in the future.”