Englewood Cliffs-based financial services company Asta Funding Inc. announced Tuesday its acquisition of CBC Settlement Funding LLC for $5.9 million.
According to the announcement, CBC purchases periodic payments under a structured settlement and annuity from individuals in exchange for a lump sum payment. In addition, the company, through another subsidiary has agreed to provide financing to CBC of up to $5 million. CBC has a portfolio of structured settlements with a present value of more than $30 million, which is financed by approximately $25 million of debt, including a $12.5 million line of credit from an institutional source and notes issued by CBC. The value of the future payments of the portfolio is over $44 million.