U.S. consumer finance company J.G. Wentworth Co. has hired a financial adviser to help it address its debt burden, as fierce competition eats into its profits, Reuters reported yesterday. J.G. Wentworth, known for its catchy jingles and television commercials, has hired investment bank Evercore Partners Inc. to help it fix its capital structure, which includes an approximately $440 million term loan, the people said. J.G. Wentworth had $300 million drawn on its credit line as of Sept. 30. The Radnor, Pa.-based company buys future payments that consumers expect to receive from various sources including state lotteries, insurance companies and annuities, and in turn pays its customers a lump sum. J.G. Wentworth securitizes the future payments and sells them. Low interest rates have increased competition, J.G. Wentworth said in its 2016 annual report. The company has also been under investigation by the Consumer Finance Protection Bureau. Specialty finance firms like J.G. Wentworth and payday lenders were under scrutiny by the CFPB, but the future of that effort is unclear after ongoing court attempts to dismantle the consumer advocacy agency.
