Paragon acquires credit card debt from MBNA for £16.1m

The Paragon Group of Companies has acquired a portfolio of closed consumer credit card debt from MBNA Europe Bank for £16.1m.

The deal was announced on 3 September and has completed today.

This acquisition follows Idem’s previous acquisition of a portfolio of closed UK consumer credit card receivables from MBNA Europe Bank Limited announced on 19 December, 2011, for the consideration of £55.7m.

Paragon has also acquired £25,000 of unsecured loans, through its Idem Capital Securities subsidiary, from Royal Bank of Scotland.

Commenting on the acquisition, Paragon chief executive Nigel Terrington says: “This is the eighth transaction by Idem Capital and brings the total investment in the current financial year up to an expected £115.7m, resulting in the division becoming an increasingly large part of the Group’s activities.

“Idem Capital was the UK’s second largest buyer of consumer loan portfolios in 2011 and we continue to see attractive portfolio acquisition opportunities with the banking and financial sectors increasingly seeking to de-leverage their balance sheets.”