Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 30, 2013 | Dec. 18, 2013 | |
Document and Entity Information | ' | ' |
Entity Registrant Name | 'JGWPT Holdings Inc. | ' |
Entity Central Index Key | '0001580185 | ' |
Document Type | '10-Q | ' |
Document Period End Date | 30-Sep-13 | ' |
Amendment Flag | 'false | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Current Reporting Status | 'No | ' |
Entity Filer Category | 'Non-accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 11,220,358 |
Document Fiscal Year Focus | '2013 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Balance_Sheets_JGWPT_Holdings_
Balance Sheets (JGWPT Holdings Inc.) (USD $) | Sep. 30, 2013 |
In Thousands, unless otherwise specified | |
Assets | ' |
Assets | $0 |
Commitments and Contingencies | 0 |
Stockholder's Equity | ' |
Common Stock, par value $0.00001 per share, 1,000 shares authorized, none issued and outstanding | 0 |
Total Stockholder's Equity | $0 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (JGWPT Holdings Inc.) (Parantheticals) (USD $) | Sep. 30, 2013 |
Condensed Consolidated Balance Sheets | ' |
Common stock, par value (in dollars per share) | $0.00 |
Common stock, authorized shares | 1,000 |
Common stock, shares issued | 0 |
Common stock, shares outstanding | 0 |
ORGANIZATION_JGWPT_Holdings_In
ORGANIZATION (JGWPT Holdings Inc.) | 9 Months Ended |
Sep. 30, 2013 | |
Background and Basis of Presentation | ' |
ORGANIZATION | ' |
1. ORGANIZATION | |
JGWPT Holdings Inc., formerly known as Wentworth Financial Holdings Inc. (the “Corporation”), was incorporated as a Delaware corporation on June 21, 2013. The Corporation was formed for the purpose of completing a public offering and related transactions in order to carry on the business of JGWPT Holdings, LLC, a Delaware limited liability company, as a publicly-traded company. Wentworth Financial Holdings Inc. changed its name to JGWPT Holdings Inc. on October 3, 2013. | |
SUMMARY_OF_SIGNIFICANT_ACCOUNT
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (JGWPT Holdings Inc.) | 9 Months Ended |
Sep. 30, 2013 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ' |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ' |
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Basis of Accounting — The Balance Sheet is presented in accordance with accounting principles generally accepted in the United States of America. Separate statements of operations, comprehensive income, changes in stockholder’s equity, and cash flows have not been presented in the financial statements because there have been no activities in this entity. | |
STOCKHOLDERS_EQUITY_JGWPT_Hold
STOCKHOLDER'S EQUITY (JGWPT Holdings Inc.) | 9 Months Ended |
Sep. 30, 2013 | |
STOCKHOLDER'S EQUITY | ' |
STOCKHOLDER'S EQUITY | ' |
3. STOCKHOLDER’S EQUITY | |
The Corporation is authorized to issue 1,000 shares of Common Stock, par value $0.00001 per share, none of which have been issued or are outstanding. | |
SUBSEQUENT_EVENTS_JGWPT_Holdin
SUBSEQUENT EVENTS (JGWPT Holdings Inc.) | 9 Months Ended |
Sep. 30, 2013 | |
Subsequent Events | ' |
SUBSEQUENT EVENTS | ' |
4. SUBSEQUENT EVENTS | |
On November 14, 2013, the Corporation consummated an initial public offering whereby 11,212,500 shares of its Class A common stock, par value $0.00001 per share (the “Class A Shares”), were sold to the public for net proceeds of $141.4 million, after payment of underwriting discounts and estimated offering expenses. The 11,212,500 shares sold were inclusive of 1,462,500 Class A Shares sold pursuant to the full exercise of an overallotment option granted to the underwriters which was consummated on December 11, 2013. The net proceeds from the initial public offering were used purchase 11,212,500 newly issued JGWPT Holdings, LLC common interests directly from JGWPT Holdings, LLC representing 37.9% of the then outstanding membership interests of JGWPT Holdings, LLC. Concurrently with the consummation of the Corporation’s initial public offering, the Corporation amended and restated its certificate of incorporation to provide for, among other things, the issuance of Class A Shares, shares of Class B common stock, par value $0.00001 per share (the “Class B Shares”), and shares of Class C common stock, par value $0.00001 per share (the “Class C Shares”). Also concurrently with the consummation of the Corporation’s initial public offering, JGWPT Holdings, LLC merged with and into a newly formed subsidiary of the Corporation and the surviving, newly formed subsidiary changed its name to JGWPT Holdings, LLC. | |
Pursuant to this merger, the operating agreement of JGWPT Holdings, LLC was amended and restated such that, among other things, (i) the Corporation became the sole managing member of JGWPT Holdings, LLC, (ii) JGWPT Holdings, LLC common interests became exchangeable for one Class A Share, or in the case of Peach Group Holdings, Inc. (“PGHI Corp.”), one share of the Corporation’s Class C Shares. Additionally, in connection with merger, each holder of JGWPT Holdings, LLC common interests, other than PGHI Corp., was issued an equivalent number of shares of the Corporation’s “vote-only” Class B Shares. As a result of these transactions, as of and subsequent to November 14, 2013, the Corporation will consolidate the financial results of JGWPT Holdings, LLC with its own and reflect the 62.1% membership interest in JGWPT Holdings, LLC it does not own as a non-controlling interest in its consolidated financial statements. | |
SUMMARY_OF_SIGNIFICANT_ACCOUNT1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (JGWPT Holdings Inc.) (Policies) | 9 Months Ended |
Sep. 30, 2013 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ' |
Basis of Accounting | ' |
Basis of Accounting — The Balance Sheet is presented in accordance with accounting principles generally accepted in the United States of America. Separate statements of operations, comprehensive income, changes in stockholder’s equity, and cash flows have not been presented in the financial statements because there have been no activities in this entity. | |
STOCKHOLDERS_EQUITY_JGWPT_Hold1
STOCKHOLDER'S EQUITY (JGWPT Holdings Inc.) (Details) (USD $) | Sep. 30, 2013 |
STOCKHOLDER'S EQUITY | ' |
Common stock, authorized shares | 1,000 |
Common stock, par value (in dollars per share) | $0.00 |
Common stock, shares issued | 0 |
Common stock, shares outstanding | 0 |
SUBSEQUENT_EVENTS_JGWPT_Holdin1
SUBSEQUENT EVENTS (JGWPT Holdings Inc.) (Details) (USD $) | 0 Months Ended | 9 Months Ended |
In Millions, except Share data, unless otherwise specified | Nov. 14, 2013 | Sep. 30, 2013 |
Subsequent events | ' | ' |
Par value per share (in dollars per share) | ' | 0.00001 |
Subsequent Events | JGWPT Holdings, LLC | ' | ' |
Subsequent events | ' | ' |
Number of common interests acquired | 11,212,500 | ' |
Ownership interest (as a percent) | 37.90% | ' |
Non-controlling interest (as a percent) | 62.10% | ' |
Subsequent Events | Class A Shares | ' | ' |
Subsequent events | ' | ' |
Shares issued in initial public offering | 11,212,500 | ' |
Par value per share (in dollars per share) | 0.00001 | ' |
Net proceeds from initial public offering | 141.4 | ' |
Subsequent Events | Class A Shares | Underwriter's overallotment option | ' | ' |
Subsequent events | ' | ' |
Shares issued in initial public offering | 1,462,500 | ' |
Subsequent Events | Class A Shares | JGWPT Holdings, LLC | ' | ' |
Subsequent events | ' | ' |
Shares issued pursuant to merger | 1 | 1 |
Subsequent Events | Class B Shares | ' | ' |
Subsequent events | ' | ' |
Par value per share (in dollars per share) | 0.00001 | ' |
Subsequent Events | Class C Shares | ' | ' |
Subsequent events | ' | ' |
Par value per share (in dollars per share) | 0.00001 | ' |
Subsequent Events | Class C Shares | PGHI Corp | ' | ' |
Subsequent events | ' | ' |
Shares issued pursuant to merger | 1 | ' |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | ||
In Thousands, unless otherwise specified | ||||
ASSETS | ' | ' | ||
Total assets | $0 | ' | ||
Predecessor | ' | ' | ||
ASSETS | ' | ' | ||
Cash and cash equivalents | 39,355 | 103,137 | ||
Restricted cash and investments | 107,995 | 112,878 | ||
VIE finance receivables, at fair market value | 3,861,612 | [1] | 3,586,465 | [1] |
Other finance receivables, at fair market value | 27,281 | 28,723 | ||
VIE finance receivables, net of allowance for losses of $3,717 and $5,348, respectively | 117,963 | [1] | 128,737 | [1] |
Other finance receivables, net of allowance for losses of $933 and $2,035, respectively | 15,542 | 21,616 | ||
Notes receivable, at fair market value | 6,238 | [1] | 8,074 | [1] |
Note receivable due from affiliate | ' | 5,243 | ||
Other receivables, net of allowance for losses of $276 and $251, respectively | 14,269 | 13,146 | ||
Fixed assets, net of accumulated depreciation of $3,128 and $4,514, respectively | 7,319 | 6,321 | ||
Intangible assets, net of accumulated amortization of $14,257 and $16,899, respectively | 48,760 | 51,277 | ||
Goodwill | 84,993 | 84,993 | ||
Marketable securities | 132,613 | 131,114 | ||
Deferred tax assets, net | 1,777 | 2,455 | ||
Other assets | 31,350 | 14,418 | ||
Total assets | 4,497,067 | 4,298,597 | ||
LIABILITIES AND MEMBER'S CAPITAL | ' | ' | ||
Accounts payable | 7,639 | 8,630 | ||
Accrued expenses | 18,776 | 12,440 | ||
Accrued interest | 13,158 | 11,687 | ||
VIE derivative liabilities, at fair market value | 81,125 | 121,498 | ||
VIE borrowings under revolving credit facilities and other similar borrowings | 49,168 | 27,380 | ||
VIE long-term debt | 154,020 | 162,799 | ||
VIE long-term debt issued by securitization and permanent financing trusts, at fair market value | 3,437,861 | 3,229,591 | ||
Term loan payable | 556,422 | 142,441 | ||
Other liabilities | 8,289 | 8,199 | ||
Installment Obligations Payable | 132,613 | 131,114 | ||
Total liabilities | 4,459,071 | 3,855,779 | ||
Member's capital | 37,996 | 442,818 | ||
Total liabilities and member's capital | $4,497,067 | $4,298,597 | ||
[1] | Pledged as collateral to credit and long-term debt facilities |
Condensed_Consolidated_Balance2
Condensed Consolidated Balance Sheets (Parantheticals) (Predecessor, USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Predecessor | ' | ' |
VIE finance receivables, allowance for losses | $5,348 | $3,717 |
Other finance receivables, allowance for losses | 2,035 | 933 |
Other receivables, allowance for losses | 251 | 276 |
Fixed assets, accumulated depreciation | 4,514 | 3,128 |
Intangible assets, accumulated amortization | $16,899 | $14,257 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Operations (Predecessor, USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Predecessor | ' | ' | ' | ' |
REVENUES | ' | ' | ' | ' |
Interest income | $45,710 | $43,166 | $126,293 | $132,515 |
Unrealized gains on VIE and other finance receivables, long-term debt and derivatives | 50,226 | 57,726 | 214,068 | 188,621 |
Gain (loss) on swap termination, net | 525 | -831 | 351 | -457 |
Servicing, broker, and other fees | 1,156 | 2,516 | 3,691 | 7,580 |
Other | -4 | 124 | -57 | 384 |
Realized loss on notes receivable, at fair market value | ' | ' | -1,862 | ' |
Realized and unrealized gains on marketable securities, net | 5,525 | 5,579 | 10,523 | 12,549 |
Total revenue | 103,138 | 108,280 | 353,007 | 341,192 |
EXPENSES | ' | ' | ' | ' |
Advertising | 17,862 | 18,463 | 51,665 | 56,232 |
Interest expense | 54,005 | 39,374 | 139,974 | 118,932 |
Compensation and benefits | 9,100 | 10,643 | 32,494 | 32,674 |
General and administrative | 4,519 | 3,370 | 14,881 | 10,565 |
Professional and consulting | 4,807 | 3,286 | 13,906 | 10,936 |
Debt issuance | 2,583 | 2,345 | 5,655 | 5,968 |
Securitization debt maintenance | 1,543 | 1,497 | 4,526 | 3,736 |
Provision for losses on finance receivables | 1,690 | 341 | 4,374 | 1,887 |
Depreciation and amortization | 1,467 | 1,603 | 4,231 | 4,735 |
Installment obligations expense, net | 6,301 | 6,400 | 12,820 | 15,018 |
Total expenses | 103,877 | 87,322 | 284,526 | 260,683 |
Income (loss) before taxes | -739 | 20,958 | 68,481 | 80,509 |
Provision (benefit) for income taxes | 146 | -269 | 1,301 | -353 |
Net income (loss) | -885 | 21,227 | 67,180 | 80,862 |
Less noncontrolling interest in earnings (loss) of affiliate | ' | -4 | ' | 2,731 |
Net income (loss) attributable to J.G. Wentworth, LLC | ($885) | $21,231 | $67,180 | $78,131 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Comprehensive Income (Loss) (Predecessor, USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Predecessor | ' | ' | ' | ' |
Net income (loss) | ($885) | $21,227 | $67,180 | $80,862 |
Other comprehensive gain (loss): | ' | ' | ' | ' |
Reclassification adjustment for loss included in net income | ' | ' | 1,862 | ' |
Unrealized gains on notes receivable arising during the year | 3 | 230 | 502 | 279 |
Total other comprehensive gain | 3 | 230 | 2,364 | 279 |
Total comprehensive income (loss) | -882 | 21,457 | 69,544 | 81,141 |
Less: Net income (loss) allocated to noncontrolling interest in earnings (loss) of affiliate | ' | -4 | ' | 2,731 |
Comprehensive income (loss) attributable to J.G. Wentworth, LLC | ($882) | $21,461 | $69,544 | $78,410 |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statement of Changes in Member's Capital (Predecessor, USD $) | 3 Months Ended | 9 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2013 |
Increase (Decrease) in Stockholders' Equity | ' | ' |
Member's Capital | ' | $442,818 |
Net income | -885 | 67,180 |
Share-based compensation | ' | 1,511 |
Capital distributions | ' | -475,877 |
Amounts reclassified from accumulated other comprehensive income | ' | 1,862 |
Unrealized gains on notes receivable arising during the period | 3 | 502 |
Member's Capital | 37,996 | 37,996 |
Member's Capital | ' | ' |
Increase (Decrease) in Stockholders' Equity | ' | ' |
Member's Capital | ' | 443,095 |
Net income | ' | 67,180 |
Share-based compensation | ' | 1,511 |
Capital distributions | ' | -475,877 |
Member's Capital | 35,909 | 35,909 |
Accumulated Other Comprehensive Gain (Loss) | ' | ' |
Increase (Decrease) in Stockholders' Equity | ' | ' |
Member's Capital | ' | -277 |
Amounts reclassified from accumulated other comprehensive income | ' | 1,862 |
Unrealized gains on notes receivable arising during the period | ' | 502 |
Member's Capital | $2,087 | $2,087 |
Condensed_Consolidated_Stateme3
Condensed Consolidated Statements of Cash Flows (Predecessor, USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Predecessor | ' | ' |
Cash flows from operating activities: | ' | ' |
Net income | $67,180 | $80,862 |
Adjustments to reconcile net income to net cash used in operating activities: | ' | ' |
Provision for losses on receivables | 4,374 | 1,887 |
Depreciation | 1,589 | 1,183 |
Amortization of finance receivables acquisition costs | 8 | 12 |
Amortization of intangibles | 2,642 | 3,552 |
Amortization of debt issuance costs | 3,173 | 1,055 |
Change in unrealized gains/losses on finance receivables | -197,429 | -346,749 |
Change in unrealized gains/losses on long-term debt | 23,769 | 157,998 |
Change in unrealized gains/losses on derivatives | -40,408 | 130 |
Loss on notes receivable, at fair market value | 1,862 | ' |
Net proceeds from sale of finance receivables | 473 | 7,881 |
Purchases of finance receivables | -315,058 | -284,764 |
Collections of finance receivables | 359,308 | 341,998 |
Gain on sale of finance receivables | -20 | -977 |
Recoveries of receivables | 1 | 558 |
Accretion of interest income | -125,759 | -131,784 |
Accretion of interest expense | -33,094 | -25,044 |
Share-based compensation expense | 1,511 | 1,841 |
Change in marketable securities, net | -10,523 | -12,549 |
Installment obligations expense, net | 12,820 | 15,018 |
Change in fair value of life settlement contracts | 22 | 517 |
Premiums and other costs paid, net of proceeds from the sale and maturity of life settlement contracts | -189 | 2,982 |
Deferred income taxes | 678 | -154 |
(Increase) decrease in operating assets: | ' | ' |
Restricted cash and investments | 4,883 | 46,248 |
Other assets | -1,965 | -2,111 |
Other receivables | -519 | -1,647 |
Increase (decrease) in operating liabilities: | ' | ' |
Accounts payable | -991 | 4,619 |
Accrued expenses | 6,336 | -7,059 |
Accrued interest | 1,471 | -77 |
Other liabilities | 835 | -5,276 |
Net cash used in operating activities | -233,020 | -149,850 |
Cash flows from investing activities: | ' | ' |
Purchase of intangible assets | -125 | -159 |
Receipts from notes receivable | 2,338 | 3,453 |
Purchase of fixed assets, net of sale proceeds | -2,587 | -2,110 |
(Issuance of) collections on notes receivable from affiliate | 5,243 | -5,000 |
Net (used in) cash provided by investing activities | 4,869 | -3,816 |
Cash flows from financing activities: | ' | ' |
Distributions of member's capital | -459,612 | ' |
Issuance of VIE long- term debt | 406,241 | 414,940 |
Payments for debt issuance costs | -19,864 | -5,873 |
Payments on lease obligations | -745 | -736 |
Repayment of long-term debt and derivatives | -195,641 | -185,258 |
Gross proceeds from revolving credit facility | 301,640 | 274,149 |
Repayments of revolving credit facility | -279,884 | -296,789 |
Issuance of installment obligations payable | 2,687 | ' |
Purchase of marketable securities | -2,687 | ' |
Repayments of installment obligations payable | -14,008 | -37,218 |
Proceeds from sale of marketable securities | 14,008 | 37,218 |
Repayments under term loan | -144,941 | -22,515 |
Net proceeds from new term loan | 557,175 | ' |
Redemption of share-based awards | ' | -300 |
Noncontrolling interest investors' distributions, net | ' | -20,991 |
Net cash provided by financing activities | 164,369 | 156,627 |
Net increase (decrease) in cash | -63,782 | 2,961 |
Cash and cash equivalents at beginning of period | 103,137 | 70,171 |
Cash and cash equivalents at end of period | 39,355 | 73,132 |
Supplemental disclosure of cash flow information: | ' | ' |
Cash paid for interest | 169,693 | 143,306 |
Capital distributions | 459,612 | ' |
Supplemental disclosure of noncash items: | ' | ' |
Issuance of note receivable from sale of finance receivables held for sale | ' | 606 |
Non-cash asset distribution of member's capital | $16,265 | ' |
Background_and_Basis_of_Presen
Background and Basis of Presentation (Predecessor) | 9 Months Ended |
Sep. 30, 2013 | |
Predecessor | ' |
Background and Basis of Presentation | ' |
1. Background and Basis of Presentation | |
Organization and Description of Business Activities | |
J.G. Wentworth, LLC was formed on July 1, 2005 as a wholly-owned subsidiary of JGW Holdco, LLC (“Holdco”). Holdco is currently owned by its members, JLL JGW Distribution, LLC, a Delaware limited liability company, and J.G. Wentworth, Inc. | |
In July 2011, the Company, Orchard Acquisition Company, LLC (“OAC”) and its subsidiaries and PGHI Corp., formed JGWPT Holdings, LLC, a Delaware limited liability company. JGWPT Holdings, LLC then formed JGW Holdings Merger Sub, LLC (“Merger Sub”), a Delaware limited liability company, as its wholly-owned subsidiary. Merger Sub was merged with and into the Company, with the Company continuing as the surviving entity in the merger, and as a result of this merger (i) all of the outstanding equity interests of the Company were converted into identical corresponding equity interests in JGWPT Holdings, LLC, (ii) all of the outstanding equity interests in JGWPT Holdings, LLC held by the Company were cancelled, and (iii) each outstanding equity interest in Merger Sub was converted into one common interest in the Company. As a result, the Company became a wholly-owned subsidiary of JGWPT Holdings, LLC, with all outstanding equity interests formerly held in the Company held in JGWPT Holdings, LLC. Subsequently, as part of the merger, OAC became a wholly-owned subsidiary of the Company (the “OAC Merger”). | |
The Company, operating through its subsidiaries and affiliates, has its principal office in Radnor, Pennsylvania. The Company provides liquidity to individuals with financial assets such as structured settlements, annuities, lottery winnings, and others by either purchasing these financial assets for a lump-sum payment, issuing installment obligations payable over time, or serving as a broker to other purchasers of financial assets. The Company also provides pre-settlement funding to people with pending personal injury claims. The Company engages in warehousing and subsequent resale or securitization of these various financial assets. | |
The Corporation was incorporated as a Delaware corporation on June 21, 2013. The Corporation was formed for the purpose of completing an initial public offering and related transactions in order to carry on the business of JGWPT Holdings, LLC as a publicly-traded company. | |
Concurrently with the initial public offering of the Corporation on November 14, 2013, JGWPT Holdings, LLC’s operating agreement was amended and restated such that, among other things, JGWPT Holdings Inc. became the sole managing member of JGWPT Holdings, LLC as of that date. These transactions are described in Note 17. | |
Basis of Presentation | |
The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and Article 10 of Regulation S-X and do not include all of the information required by GAAP for complete financial statements. In the opinion of management, the unaudited financial statements reflect all adjustments which are necessary for a fair presentation of financial position, results of operations, and cash flows for the interim periods presented. All such adjustments are of a normal, recurring nature. The results of operations for interim periods are not necessarily indicative of the results for the entire year. | |
The preparation of the financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts reported in the unaudited consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. The most significant balance sheet accounts that could be affected by such estimates are variable interest entity (“VIE”) and other finance receivables, at fair market value, VIE derivative liabilities at fair market value, VIE long-term debt issued by securitization and permanent financing trusts at fair market value, intangible assets and goodwill. Actual results could differ from those estimates and such differences could be material. These interim financial statements should be read in conjunction with the Company’s 2012 audited consolidated financial statements that are included in our Post-Effective Amendment No. 1 to Form S-1 Registration Statement filed on November 8, 2013. | |
The accompanying unaudited condensed consolidated financial statements include the accounts of the Company, its wholly-owned subsidiaries, including those entities that are considered VIEs, and where the Company has been determined to be the primary beneficiary in accordance with Accounting Standards Codification (“ASC”) 810, Consolidation (“ASC 810”). Excluded from the consolidated financial statements of the Company are those entities that are considered VIEs and where the Company has been deemed not to be the primary beneficiary according to ASC 810. The December 31, 2012 consolidated financial statements also included the accounts of American Insurance Strategies Fund II, LP (“AIS Fund II”) for which the Company was the general partner. The limited partners’ interests are reflected as non-controlling interests in the Company’s consolidated financial statements. In 2012, the assets of the AIS Fund II were liquidated and distributed to the partners. | |
All material inter-company balances and transactions are eliminated in consolidation. | |
Recently_Issued_Accounting_Sta
Recently Issued Accounting Statements (Predecessor) | 9 Months Ended | ||||||
Sep. 30, 2013 | |||||||
Predecessor | ' | ||||||
Recently Issued Accounting Statements | ' | ||||||
2. Recently Issued Accounting Statements | |||||||
Effective January 1, 2013, the Company adopted ASU 2011-11, Disclosures about Offsetting Assets and Liabilities. The ASU requires disclosures that affect all entities with financial instruments and derivatives that are either offset on the balance sheet in accordance with ASC 210-20-45 or ASC 815-10-45, or subject to a master netting arrangement, irrespective of whether they are offset on the balance sheet. Entities should provide the disclosures required by ASU No. 2011-11 retrospectively for all comparative periods presented. Adoption of ASU 2011-11 did not impact the Company’s financial statements. | |||||||
Effective January 1, 2013, the Company early adopted ASU 2013-02, Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income. The ASU requires entities to report, either on the face of the income statement or in the notes, the effect of significant reclassifications out of accumulated other comprehensive income (“AOCI”) on the respective line items in net income if the amount being reclassified is required under GAAP to be reclassified in its entirety to net income. For other amounts that are not required under GAAP to be reclassified in their entirety from AOCI to net income in the same reporting period, an entity is required to cross-reference other disclosures required under GAAP that provide additional detail about those amounts. The Company did not record any reclassifications out of accumulated other comprehensive income during the three-months ended September 30, 2013. The Company did record the following reclassifications out of accumulated other comprehensive income during the nine-months ended September 30, 2013 as a result of the associated notes maturing during the period: | |||||||
Details about accumulated other | Amount reclassified | Affected line item in the | |||||
comprehensive income components | from accumulated | statement of operations | |||||
other | |||||||
comprehensive | |||||||
income | |||||||
Unrealized gains and losses on available-for-sale securities | $ | 1,862 | Realized loss on notes receivable, at fair market value | ||||
As discussed more fully in Note 3 of the Company’s 2012 audited consolidated financial statements, the notes receivable are treated as debt securities, classified as available-for-sale, and carried at fair value. The remaining $6,238 of notes receivable, at fair market value at September 30, 2013, are expected to mature in 2018. | |||||||
In July 2013, the FASB issued ASU No. 2013-11, Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists (“ASU 2013-11”). ASU 2013-11 requires, unless certain conditions exists, an unrecognized tax benefit, or a portion of an unrecognized tax benefit, to be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, similar tax loss, or a tax credit carryforward. ASU 2013-11 is effective prospectively for reporting periods beginning after December 15, 2013, with early adoption permitted. Retrospective application is permitted. The Company does not anticipate the adoption of this amendment will have a material impact on its financial statements. |
Variable_Interest_Entities
Variable Interest Entities (Predecessor) | 9 Months Ended |
Sep. 30, 2013 | |
Predecessor | ' |
Variable Interest Entities | ' |
3. Variable Interest Entities | |
In the normal course of business, the Company is involved with various entities that are considered to be VIEs. A VIE is an entity that has either a total investment that is insufficient to permit the entity to finance its activities without additional subordinated financial support or whose equity investors lack the characteristics of a controlling financial interest under the voting interest model of consolidation. The Company is required to consolidate any VIE for which it is determined to be the primary beneficiary. The primary beneficiary is the entity that has the power to direct those activities of the VIE that most significantly impact the VIEs’ economic performance and has the obligation to absorb losses from or the right to receive benefits from the VIE that could potentially be significant to the VIE. The Company reviews all significant interests in the VIEs it is involved with including consideration of the activities of the VIEs that most significantly impact the VIEs’ economic performance and whether the Company has control over those activities. On an ongoing basis, the Company assesses whether or not it is the primary beneficiary of a VIE. | |
As a result of adopting ASC 810, the Company was deemed to be the primary beneficiary of the VIEs used to securitize its finance receivables (“VIE finance receivables”). The Company elected the fair value option with respect to assets and liabilities in its securitization VIEs as part of their initial consolidation on January 1, 2010. | |
The debt issued by the Company’s securitization VIEs is reported on the Company’s consolidated balance sheets as long-term debt issued by securitization and permanent financing trusts, at fair market value (“VIE securitization debt”). The VIE securitization debt is recourse solely to the VIE finance receivables held by such special purpose entities (Note 5 and 6) and thus is non-recourse to the other consolidated subsidiaries. The VIEs will continue in operation until all securitization debt is paid and all residual cash flows are collected. As a result of the long lives of many finance receivables purchased and securitized by the Company, most consolidated VIEs have expected lives in excess of twenty years. | |
Fair_Value_Measurements
Fair Value Measurements (Predecessor) | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Predecessor | ' | |||||||||||||
Fair Value Measurements | ' | |||||||||||||
4. Fair Value Measurements | ||||||||||||||
ASC 820, Fair Value Measurements and Disclosures (“ASC 820”), establishes a three-level valuation hierarchy for disclosure of fair value measurements. The valuation hierarchy is based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. The three levels are defined as follows: | ||||||||||||||
· Level 1 — inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in active markets that are accessible at the measurement date. | ||||||||||||||
· Level 2 — inputs to the valuation methodology include quoted prices in markets that are not active or quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. | ||||||||||||||
· Level 3 — inputs to the valuation methodology are unobservable, reflecting the entity’s own assumptions about assumptions market participants would use in pricing the asset or liability. | ||||||||||||||
A financial instrument’s categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Fair value is a market based measure considered from the perspective of a market participant who holds the asset or owes the liabilities rather than an entity specific measure. Therefore, even when market assumptions are not readily available, the Company’s own assumptions are set to reflect those that market participants would use in pricing the assets or liabilities at the measurement date. The Company uses valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs. The Company also evaluates various factors to determine whether certain transactions are orderly and may make adjustments to transactions or quoted prices when the volume and level of activity for an asset or liability have decreased significantly. | ||||||||||||||
The above conditions could cause certain assets and liabilities to be reclassified from Level 1 to Level 2/Level 3 or Level 2 to Level 3. The inputs or methodology used for valuing the assets or liabilities are not necessarily an indication of the risk associated with the assets and liabilities. | ||||||||||||||
The following methods and assumptions were used to estimate the fair value of each class of financial instruments for which it is practicable to estimate that value: | ||||||||||||||
Marketable securities — The estimated fair value of investments in marketable securities is based on quoted market prices. | ||||||||||||||
VIE and other finance receivables and VIE long-term debt issued by securitization and permanent financing trusts, at fair market value — The estimated fair value of VIE and other finance receivables and VIE long-term debt issued by securitization and permanent financing trusts, at fair value is determined based on a discounted cash flow model using expected future collections discounted at a calculated rate. | ||||||||||||||
For guaranteed structured settlements and annuities, the Company allocates the projected cash flows based on the waterfall of the securitization and permanent financing trusts (collectivity the “Trusts”). The waterfall includes fees to operate the Trusts (servicing fees, administrative fees, etc.), note holder principal and note holder interest. Many of the Trusts have various tranches of debt that have varying subordinations in the waterfall calculation. The remaining cash flows, net of those obligations, are considered a residual interest which is projected to be paid to the Company’s retained interest holders. | ||||||||||||||
The projected finance receivable cash flows used to pay the obligations of the Trusts are discounted using a calculated rate derived from the fair value interest rates of the debt in the Trusts. The fair value interest rate of the debt is derived using a swap curve and applying a calculated spread using the Company’s most recent securitization as a benchmark. The calculated spread is adjusted for the specific attributes of the debt in the Trusts, such as years to maturity and credit grade. The debt’s fair value interest rates are applied to the projected future cash payments paid on the principal and interest to derive the debt’s fair value. The debt’s fair value interest rates are blended using the debt’s principal balance to obtain a weighted average fair value interest rate; this rate is used to determine the value of the finance receivables’ asset cash flows. In addition, the Company considers transformation cost and profit margin associated with its securitizations to derive the fair value of its finance receivables’ asset cash flows. The finance receivables’ residual cash flows remaining after the projected obligations of the Trusts are satisfied are discounted using a separate yield based on an assumed rating of the residual tranche. The finance receivables’ residual cash flows remaining after the projected obligations of the Trusts are satisfied are discounted using a separate yield based on an assumed rating of the residual tranche (9.34% and 7.71% as of December 31, 2012 and September 30, 2013, respectively, with a weighted average life of 20 years as of both dates). | ||||||||||||||
The residual cash flows are adjusted for a loss assumption of 0.25% over the life of the finance receivables in its fair value calculation. Finance receivable cash flows, including the residual asset cash flows, are included in finance receivables, at fair market value in the Company’s consolidated balance sheets. The associated debt’s projected future cash payments for principal and interest are included in VIE long-term debt issued by securitization and permanent financing trusts, at fair market value. | ||||||||||||||
For finance receivables not yet securitized, the Company uses the calculated spreads, as well as considering transformation costs and profit margin, from its most recent securitization to determine the fair value yield adjusting for expected losses and applying the residual yield for the cash flows the Company projects would make up the retained interest in a securitization. | ||||||||||||||
For the Company’s life contingent structured settlement (“LCSS”) receivables and long-term debt issued by its related permanent financing trusts, the blended weighted average discount rate of the LCSS receivables at the time of borrowing (which occurs frequently throughout the year) is used to determine the fair value of the receivables’ cash flows. The residual cash flows relating to the LCSS receivables are discounted using a separate yield based on the assumed rating to the residual tranche reflecting the life contingent feature of these receivables. | ||||||||||||||
VIE and other finance receivables, net of allowance for losses — The fair value of structured settlement, annuity, and lottery receivables was estimated based on the present value of future expected cash flows using discount rates commensurate with the risks involved. The fair value of pre-settlement funding transactions and attorney cost financing was based on expected losses and historical loss experience associated with the respective receivables using management’s best estimates of the key assumptions regarding credit losses. | ||||||||||||||
Life settlement contracts, at fair market value — The fair values of life settlement contracts are determined by reference to the transfer price of similar life settlement contracts under a discounted cash flow calculation that takes into account the net death benefit under the policy, estimated future premium payments and the life expectancy of the insured, as well as other qualitative factors regarding market participants assumptions. Life expectancy is determined on a policy-by-policy basis using the results of medical underwriting performed by independent agencies. | ||||||||||||||
Notes receivable, at fair market value — The fair values of notes receivables are determined based on the discounted present value of future expected cash flows using management’s best estimates of the key assumptions regarding credit losses and discount rates determined to be commensurate with the risks involved. The Company does not expect prepayment on the finance receivables underlying the notes receivable and accordingly, no significant change in the fair value is expected as a result of prepayment. The fair value and amortized costs of these notes receivable are as follows: | ||||||||||||||
December 31, 2012 | September 30, 2013 | |||||||||||||
Amortized cost | $ | 8,297 | $ | 6,175 | ||||||||||
Fair market value | $ | 8,074 | $ | 6,238 | ||||||||||
Note receivable due from affiliate — The estimated fair value of note receivable due from affiliate is assumed to equal its carrying amount. The note receivable was repaid in full in February 2013. | ||||||||||||||
Other receivables, net of allowance for losses — The estimated fair value of advances receivable and certain other receivables, which are generally recovered in less than three months, is assumed to equal to the carrying amount. The carrying value of other receivables which have expected recoverability of greater than three months, which consist primarily of a note receivable, have been estimated based on the present value of future expected cash flows using management’s best estimate of the key assumptions, including discount rates commensurate with the risks involved. | ||||||||||||||
VIE derivative liabilities, at fair value — The fair value of interest rate swaps is based on dealer quotes that are corroborated with pricing models that utilize current interest rates and the timing and amount of cash flows. | ||||||||||||||
Installment obligations payable — Installment obligations payable are reported at contract value determined based on changes in the measuring indices selected by the obligees under the terms of the obligations over the lives of the obligations. The fair value of installment obligations payable is estimated to be equal to carrying value. | ||||||||||||||
Term loan payable — The carrying value of the term loan approximates its fair value. In February 2013, the term loan was refinanced with a new senior secured credit facility and subsequently, in May 2013, the new credit facility was amended to provide an additional term loan with the same terms as the new credit facility. | ||||||||||||||
VIE borrowings under revolving credit facilities and other similar borrowings — The estimated fair value of borrowings under revolving credit facilities and other similar borrowings is based on the borrowing rates currently available to the Company for debt with similar terms and remaining maturities. The Company estimates that the carrying value of its lines of credit, which bear interest at a variable rate, approximates fair value. | ||||||||||||||
VIE long-term debt — The estimated fair value of VIE long-term debt is based on fair value borrowing rates available to the Company based on recently executed transactions with similar underlying collateral characteristics, reflecting the specific terms and conditions of the debt. | ||||||||||||||
The following table sets forth the Company’s assets and liabilities that are carried at fair value on the Company’s condensed consolidated balance sheets as of December 31, 2012 and September 30, 2013: | ||||||||||||||
Quoted Prices in | Significant Other | Significant | Total | |||||||||||
Active Markets for | Observable Inputs | Unobservable | ||||||||||||
Identical Assets | Inputs | |||||||||||||
Level I | Level II | Level III | at Fair Value | |||||||||||
December 31, 2012: | ||||||||||||||
Assets | ||||||||||||||
Marketable securities: | ||||||||||||||
Equity securities | ||||||||||||||
US large cap | $ | 40,446 | $ | — | $ | — | $ | 40,446 | ||||||
US mid cap | 8,472 | — | — | 8,472 | ||||||||||
US small cap | 9,224 | — | — | 9,224 | ||||||||||
International | 22,651 | — | — | 22,651 | ||||||||||
Other equity | 789 | — | — | 789 | ||||||||||
Total equity securities | 81,582 | — | — | 81,582 | ||||||||||
Fixed income securities | ||||||||||||||
US fixed income | 36,047 | — | — | 36,047 | ||||||||||
International fixed income | 5,963 | — | — | 5,963 | ||||||||||
Other fixed income | 11 | — | — | 11 | ||||||||||
Total fixed income securities | 42,021 | — | — | 42,021 | ||||||||||
Other securities | ||||||||||||||
Cash & cash equivalents | 4,789 | — | — | 4,789 | ||||||||||
Alternative investments | 483 | — | — | 483 | ||||||||||
Annuities | 2,239 | — | — | 2,239 | ||||||||||
Total other securities | 7,511 | — | — | 7,511 | ||||||||||
Total marketable securities | 131,114 | — | — | 131,114 | ||||||||||
VIE and other finance receivables, at fair market value | — | — | 3,615,188 | 3,615,188 | ||||||||||
Notes receivable, at fair market value | — | — | 8,074 | 8,074 | ||||||||||
Life settlement contracts, at fair market value (1) | — | — | 1,724 | 1,724 | ||||||||||
Total Assets | $ | 131,114 | $ | — | $ | 3,624,986 | $ | 3,756,100 | ||||||
Liabilities | ||||||||||||||
VIE long-term debt issued by securitization and permanent financing trusts, at fair market value | $ | — | $ | — | $ | 3,229,591 | $ | 3,229,591 | ||||||
VIE derivative liabilities, at fair market value | — | 121,498 | — | 121,498 | ||||||||||
Total Liabilities | $ | — | $ | 121,498 | $ | 3,229,591 | $ | 3,351,089 | ||||||
September 30, 2013: | ||||||||||||||
Assets | ||||||||||||||
Marketable securities: | ||||||||||||||
Equity securities | ||||||||||||||
US large cap | $ | 44,765 | $ | — | $ | — | $ | 44,765 | ||||||
US mid cap | 9,125 | — | — | 9,125 | ||||||||||
US small cap | 10,481 | — | — | 10,481 | ||||||||||
International | 22,233 | — | — | 22,233 | ||||||||||
Other equity | 821 | — | — | 821 | ||||||||||
Total equity securities | 87,425 | — | — | 87,425 | ||||||||||
Fixed income securities | ||||||||||||||
US fixed income | 33,263 | — | — | 33,263 | ||||||||||
International fixed income | 5,303 | — | — | 5,303 | ||||||||||
Other fixed income | 30 | — | — | 30 | ||||||||||
Total fixed income securities | 38,596 | — | — | 38,596 | ||||||||||
Other securities | ||||||||||||||
Cash & cash equivalents | 3,754 | — | — | 3,754 | ||||||||||
Alternative investments | 645 | — | — | 645 | ||||||||||
Annuities | 2,193 | — | — | 2,193 | ||||||||||
Total other securities | 6,592 | — | — | 6,592 | ||||||||||
Total marketable securities | 132,613 | — | — | 132,613 | ||||||||||
VIE and other finance receivables, at fair market value | — | — | 3,888,893 | 3,888,893 | ||||||||||
Notes receivable, at fair market value | — | — | 6,238 | 6,238 | ||||||||||
Total Assets | $ | 132,613 | $ | — | $ | 3,895,131 | $ | 4,027,744 | ||||||
Liabilities | ||||||||||||||
VIE long-term debt issued by securitization and permanent financing trusts, at fair market value | $ | — | $ | — | $ | 3,437,861 | $ | 3,437,861 | ||||||
VIE derivative liabilities, at fair market value | — | 81,125 | 81,125 | |||||||||||
Total Liabilities | $ | — | $ | 81,125 | $ | 3,437,861 | $ | 3,518,986 | ||||||
(1) Included in other assets on the Company’s condensed consolidated balance sheets. | ||||||||||||||
The following table sets forth the Company’s quantitative information about its Level 3 fair value measurements as of December 31, 2012 and September 30, 2013, respectively: | ||||||||||||||
December 31, 2012: | Fair Value | Valuation Technique | Unobservable Input | Range (Weighted Avg) | ||||||||||
Assets | ||||||||||||||
VIE and other finance receivables, at fair market value | $ | 3,615,188 | Discounted cash flow | Discount rate | 2.68% - 12.52% (3.99%) | |||||||||
Notes receivable, at fair market value | 8,074 | Discounted cash flow | Discount rate | 9.78% (9.78%) | ||||||||||
Life settlement contracts, at fair market value | 1,724 | Model actuarial pricing | Life expectancy Discount rate | 16 to 260 months (147) 18.50% (18.50%) | ||||||||||
Total Assets | $ | 3,624,986 | ||||||||||||
Liabilities | ||||||||||||||
VIE long-term debt issued by securitization and permanent financing trusts, at fair market value | $ | 3,229,591 | Discounted cash flow | Discount rate | 0.53% - 12.38% (3.43%) | |||||||||
Total Liabilities | $ | 3,229,591 | ||||||||||||
September 30, 2013: | Fair Value | Valuation Technique | Unobservable Input | Range (Weighted Avg) | ||||||||||
Assets | ||||||||||||||
VIE and other finance receivables, at fair market value | $ | 3,888,893 | Discounted cash flow | Discount rate | 2.59% - 12.98% (3.99%) | |||||||||
Notes receivable, at fair market value | 6,238 | Discounted cash flow | Discount rate | 7.71% (7.71%) | ||||||||||
Life settlement contracts, at fair market value | — | Model actuarial pricing | Life expectancy Discount rate | 7 to 251 months (140) 18.50% (18.50%) | ||||||||||
Total Assets | $ | 3,895,131 | ||||||||||||
Liabilities | ||||||||||||||
VIE long-term debt issued by securitization and permanent financing trusts, at fair market value | $ | 3,437,861 | Discounted cash flow | Discount rate | 0.74% - 12.67% (3.60%) | |||||||||
Total Liabilities | $ | 3,437,861 | ||||||||||||
A significant unobservable input used in the fair value measurement of all of the Company’s assets and liabilities measured at fair value using unobservable inputs (Level 3) is the discount rate. Significant increases (decreases) in the discount rate used to estimate fair value in isolation would result in a significantly lower (higher) fair value measurement of the corresponding asset or liability. An additional significant unobservable input used in the fair value measurement of the life settlement contracts, at fair value, is life expectancy. Significant increases (decreases) in the life expectancy used to estimate the fair value of life settlement contracts in isolation would result in a significantly lower (higher) fair value measurement. | ||||||||||||||
The changes in assets measured at fair value using significant unobservable inputs (Level 3) during the nine-months ended September 30, 2012 and 2013 were as follows: | ||||||||||||||
VIE and other | Life settlement | Notes receivable, at | Total | |||||||||||
finance receivables, | contracts, at fair | fair market value | ||||||||||||
at fair market value | market value | |||||||||||||
Balance at December 31, 2011 | $ | 3,041,090 | $ | 6,214 | $ | 12,765 | $ | 3,060,069 | ||||||
Total gains (losses): | ||||||||||||||
Included in earnings / losses | 346,746 | (517 | ) | — | 346,229 | |||||||||
Included in other comprehensive gain | — | — | 279 | 279 | ||||||||||
Purchases | 259,005 | — | — | 259,005 | ||||||||||
Premiums paid | — | 935 | — | 935 | ||||||||||
Sales | (447 | ) | (3,917 | ) | — | (4,364 | ) | |||||||
Lapsed policies | — | — | — | — | ||||||||||
Interest accreted | 111,798 | — | — | 111,798 | ||||||||||
Payments received | (303,721 | ) | — | (3,453 | ) | (307,174 | ) | |||||||
Maturities | — | — | — | — | ||||||||||
Transfers in and/or out of Level 3 | — | — | — | — | ||||||||||
Balance at September 30, 2012 | $ | 3,454,471 | $ | 2,715 | $ | 9,591 | $ | 3,466,777 | ||||||
The amount of total gains (losses) for the period included in earnings attributable to the change in unrealized gains or losses relating to assets still held at: | ||||||||||||||
September 30, 2012 | $ | 346,155 | $ | (132 | ) | $ | — | $ | 346,023 | |||||
Balance at December 31, 2012 | $ | 3,615,188 | $ | 1,724 | $ | 8,074 | $ | 3,624,986 | ||||||
Total gains (losses): | ||||||||||||||
Included in earnings / losses | 197,429 | (22 | ) | — | 197,407 | |||||||||
Included in other comprehensive gain | — | — | 502 | 502 | ||||||||||
Purchases | 300,452 | — | — | 300,452 | ||||||||||
Premiums paid | — | 241 | — | 241 | ||||||||||
Sales | — | — | — | — | ||||||||||
Lapsed policies | — | — | — | — | ||||||||||
Interest accreted | 107,784 | — | — | 107,784 | ||||||||||
Payments received | (322,345 | ) | — | (2,338 | ) | (324,683 | ) | |||||||
Maturities | — | (51 | ) | — | (51 | ) | ||||||||
Asset distribution | (9,615 | ) | (1,892 | ) | — | (11,507 | ) | |||||||
Transfers in and/or out of Level 3 | — | — | — | — | ||||||||||
Balance at September 30, 2013 | $ | 3,888,893 | $ | — | $ | 6,238 | $ | 3,895,131 | ||||||
The amount of total gains (losses) for the period included in earnings attributable to the change in unrealized gains or losses relating to assets still held at: | ||||||||||||||
September 30, 2013 | $ | 197,429 | $ | 31 | $ | — | $ | 197,460 | ||||||
The changes in liabilities measured at fair value using significant unobservable inputs (Level 3) during the nine-months ended September 30, 2012 and 2013 were as follows: | ||||||||||||||
VIE long-term debt issued | ||||||||||||||
by securitizations and | ||||||||||||||
permanent financing trusts | ||||||||||||||
Balance at December 31, 2011 | $ | 2,663,873 | ||||||||||||
Total (gains) losses: | ||||||||||||||
Included in earnings / losses | 157,998 | |||||||||||||
Issuances | 400,881 | |||||||||||||
Interest accreted | (25,207 | ) | ||||||||||||
Repayments | (169,693 | ) | ||||||||||||
Transfers in and/or out of Level 3 | — | |||||||||||||
Balance at September 30, 2012 | $ | 3,027,852 | ||||||||||||
The amount of total (gains) losses for the period included in earnings attributable to the change in unrealized gains or losses relating to long- term debt still held at: | ||||||||||||||
September 30, 2012 | $ | 157,998 | ||||||||||||
Balance at December 31, 2012 | $ | 3,229,591 | ||||||||||||
Total (gains) losses: | ||||||||||||||
Included in earnings / losses | 23,769 | |||||||||||||
Issuances | 406,240 | |||||||||||||
Interest accreted | (35,863 | ) | ||||||||||||
Repayments | (185,876 | ) | ||||||||||||
Transfers in and/or out of Level 3 | — | |||||||||||||
Balance at September 30, 2013 | $ | 3,437,861 | ||||||||||||
The amount of total (gains) losses for the period included in earnings attributable to the change in unrealized gains or losses relating to long- term debt still held at: | ||||||||||||||
September 30, 2013 | $ | 23,769 | ||||||||||||
Realized and unrealized gains and losses included in earnings in the accompanying condensed consolidated statements of operations for the three and nine-months ended September 30, 2012 and 2013 are reported in the following revenue categories: | ||||||||||||||
VIE and other finance | Life settlement | |||||||||||||
receivables and long- | contracts income | |||||||||||||
term debt | ||||||||||||||
Total gains (losses) included in earnings in the three months ended September 30, 2012 | $ | 57,142 | $ | 183 | ||||||||||
Change in unrealized gains (losses) in the three months ended September 30, 2012 relating to assets still held at the reporting date | $ | 57,142 | $ | 183 | ||||||||||
Total gains (losses) included in earnings in the three months ended September 30, 2013 | $ | 46,020 | $ | 51 | ||||||||||
Change in unrealized gains (losses) in the three months ended September 30, 2013 relating to assets still held at the reporting date | $ | 46,020 | $ | 51 | ||||||||||
Total gains (losses) included in earnings in the nine months ended September 30, 2012 | $ | 188,748 | $ | (517 | ) | |||||||||
Change in unrealized gains (losses) in the nine months ended September 30, 2012 relating to assets still held at the reporting date | $ | 188,157 | $ | (132 | ) | |||||||||
Total gains (losses) included in earnings in the nine months ended September 30, 2013 | $ | 173,660 | $ | (22 | ) | |||||||||
Change in unrealized gains (losses) in the nine months ended September 30, 2013 relating to assets still held at the reporting date | $ | 173,660 | $ | 31 | ||||||||||
The Company discloses fair value information about financial instruments, whether or not recognized at fair value in the Company’s condensed consolidated balance sheets, for which it is practicable to estimate that value. As such, the estimated fair values of the Company’s financial instruments are as follows: | ||||||||||||||
December 31, | September 30, | |||||||||||||
2012 | 2013 | |||||||||||||
Estimated | Estimated | |||||||||||||
Fair | Carrying | Fair | Carrying | |||||||||||
Value | Amount | Value | Amount | |||||||||||
Financial assets | ||||||||||||||
Marketable securities | $ | 131,114 | $ | 131,114 | $ | 132,613 | $ | 132,613 | ||||||
VIE and other finance receivables, at fair market value | 3,615,188 | 3,615,188 | 3,888,893 | 3,888,893 | ||||||||||
VIE and other finance receivables, net of allowance for losses (1) | 145,155 | 150,353 | 127,413 | 133,505 | ||||||||||
Life settlement contracts, at fair market value | 1,724 | 1,724 | — | — | ||||||||||
Notes receivable, at fair market value | 8,074 | 8,074 | 6,238 | 6,238 | ||||||||||
Notes receivable, due from affiliate (1) | 5,243 | 5,243 | — | — | ||||||||||
Other receivables, net of allowance for losses (1) | 13,146 | 13,146 | 14,269 | 14,269 | ||||||||||
Financial liabilities | ||||||||||||||
VIE derivative liabilities, at fair market value | 121,498 | 121,498 | 81,125 | 81,125 | ||||||||||
VIE borrowings under revolving credit facilities and other similar borrowings (1) | 28,198 | 27,380 | 50,655 | 49,168 | ||||||||||
VIE long-term debt (1) | 158,801 | 162,799 | 149,954 | 154,020 | ||||||||||
VIE long-term debt issued by securitization and permanent financing trusts, at fair market value | 3,229,591 | 3,229,591 | 3,437,861 | 3,437,861 | ||||||||||
Installment obligations payable (1) | 131,114 | 131,114 | 132,613 | 132,613 | ||||||||||
Term loan payable (1) | 142,441 | 142,441 | 556,422 | 556,422 | ||||||||||
(1) These represent financial instruments not recorded in the condensed consolidated balance sheets at fair value. Such financial instruments would be classified as Level 3 within the fair value hierarchy. |
VIE_and_Other_Finance_Receivab
VIE and Other Finance Receivables, at Fair Market Value (Predecessor) | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Predecessor | ' | |||||||||||||
VIE and Other Finance Receivables, at Fair Market Value | ' | |||||||||||||
5. VIE and Other Finance Receivables, at Fair Market Value | ||||||||||||||
The Company has elected to fair value newly originated guaranteed structured settlements in accordance with ASC 810. Additionally, as a result of the Company including lottery winning finance receivables in its 2013-1 asset securitization, the Company also elected to fair value newly originated lottery winnings effective January 1, 2013. As of December 31, 2012 and September 30, 2013, VIE and other finance receivables for which the fair value option was elected consist of the following: | ||||||||||||||
December 31, 2012 | September 30, 2013 | |||||||||||||
Maturity value | $ | 5,335,328 | $ | 5,784,472 | ||||||||||
Unearned income | (1,720,140 | ) | (1,895,579 | ) | ||||||||||
Net carrying amount | $ | 3,615,188 | $ | 3,888,893 | ||||||||||
Encumbrances on VIE and other finance receivables, at fair value are as follows: | ||||||||||||||
Encumbrance | December 31, 2012 | September 30, 2013 | ||||||||||||
VIE securitization debt (2) | $ | 3,550,394 | $ | 3,773,189 | ||||||||||
$100 million credit facility (1) | 230 | 19,014 | ||||||||||||
$200 million credit facility (1) | 7,059 | 13,924 | ||||||||||||
$300 million credit facility (1) | 8,277 | 19,480 | ||||||||||||
$50 million permanent financing related to 2011-A | 20,505 | 36,005 | ||||||||||||
Total VIE finance receivables at fair value | 3,586,465 | 3,861,612 | ||||||||||||
Not encumbered | 28,723 | 27,281 | ||||||||||||
Total VIE and other finance receivables at fair value | $ | 3,615,188 | $ | 3,888,893 | ||||||||||
(1) See Note 7 | ||||||||||||||
(2) See Note 9 | ||||||||||||||
Notes receivable, at fair market value and residual cash flows from finance receivables, at fair market value held in securitizations are pledged as collateral for the residual term debt (Note 8) at December 31, 2012 and September 30, 2013. | ||||||||||||||
The Company is engaged to service certain finance receivables it sells to third parties. Servicing fee revenue related to those receivables are included in servicing, broker, and other fees in the Company’s unaudited condensed consolidated statements of operations, and for the three and nine-months ended September 30, 2013 and 2012 were as follows: | ||||||||||||||
Three-Months Ended September 30, | Nine-Months Ended September 30, | |||||||||||||
2012 | 2013 | 2012 | 2013 | |||||||||||
Servicing fees | $ | 258 | $ | 239 | $ | 803 | $ | 714 | ||||||
VIE_and_Other_Finance_Receivab1
VIE and Other Finance Receivables, net of Allowance for Losses (Predecessor) | 9 Months Ended | ||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||
Predecessor | ' | ||||||||||||||||||||||
VIE and Other Finance Receivables, net of Allowance for Losses | ' | ||||||||||||||||||||||
6. VIE and Other Finance Receivables, net of Allowance for Losses | |||||||||||||||||||||||
VIE and other finance receivables, net of allowance for losses, as of December 31, 2012 and September 30, 2013 consist of the following: | |||||||||||||||||||||||
December 31, 2012 | September 30, 2013 | ||||||||||||||||||||||
Structured settlements and annuities | $ | 79,653 | $ | 76,640 | |||||||||||||||||||
Less: unearned income | (53,398 | ) | (50,552 | ) | |||||||||||||||||||
26,255 | 26,088 | ||||||||||||||||||||||
Lottery winnings | 97,204 | 89,232 | |||||||||||||||||||||
Less: unearned income | (33,768 | ) | (29,500 | ) | |||||||||||||||||||
63,436 | 59,732 | ||||||||||||||||||||||
Pre-settlement funding transactions | 62,775 | 55,460 | |||||||||||||||||||||
Less: deferred revenue | (4,296 | ) | (2,872 | ) | |||||||||||||||||||
58,479 | 52,588 | ||||||||||||||||||||||
Life insurance premium financing | 3,807 | — | |||||||||||||||||||||
Less: deferred revenue | (43 | ) | — | ||||||||||||||||||||
3,764 | — | ||||||||||||||||||||||
Attorney cost financing | 3,072 | 2,480 | |||||||||||||||||||||
Less: deferred revenue | (3 | ) | — | ||||||||||||||||||||
3,069 | 2,480 | ||||||||||||||||||||||
VIE and other finance receivables, gross | 155,003 | 140,888 | |||||||||||||||||||||
Less: allowance for losses | (4,650 | ) | (7,383 | ) | |||||||||||||||||||
VIE and other finance receivables, net | $ | 150,353 | $ | 133,505 | |||||||||||||||||||
Encumbrances on VIE and other finance receivables, net are as follows: | |||||||||||||||||||||||
Encumbrance | December 31, 2012 | September 30, 2013 | |||||||||||||||||||||
VIE securitization debt (2) | $ | 80,826 | $ | 79,193 | |||||||||||||||||||
$40 million pre-settlement credit facility (1) | 25,859 | 23,463 | |||||||||||||||||||||
$45.1 million long-term presettlement facility (2) | 19,389 | 12,775 | |||||||||||||||||||||
$2.4 million long-term facility (2) | 2,663 | 2,532 | |||||||||||||||||||||
Total VIE finance receivables, net of allowances | 128,737 | 117,963 | |||||||||||||||||||||
Not encumbered | 21,616 | 15,542 | |||||||||||||||||||||
Total VIE and other finance receivables, net of allowances | $ | 150,353 | $ | 133,505 | |||||||||||||||||||
(1) See Note 7 | |||||||||||||||||||||||
(2) See Note 8 | |||||||||||||||||||||||
Activity in the allowance for losses for VIE and other finance receivables for the three and nine-months ended September 30, 2012 and 2013 was as follows: | |||||||||||||||||||||||
Structured | Lottery | Pre-settlement | Life insurance | Attorney cost | Total | ||||||||||||||||||
settlements and | funding | premium financing | financing | ||||||||||||||||||||
annuities | transactions | ||||||||||||||||||||||
Three-months ended September 30, 2012: | |||||||||||||||||||||||
Allowance for losses: | |||||||||||||||||||||||
Balance at beginning of period | $ | (381 | ) | $ | (1 | ) | $ | (1,644 | ) | $ | — | $ | (482 | ) | $ | (2,508 | ) | ||||||
Provision for loss | — | 55 | (504 | ) | 2 | 106 | (341 | ) | |||||||||||||||
Charge-offs | 49 | 18 | 65 | — | 19 | 151 | |||||||||||||||||
Recoveries | — | (72 | ) | (479 | ) | (2 | ) | — | (553 | ) | |||||||||||||
Balance at end of period | $ | (332 | ) | $ | — | $ | (2,562 | ) | $ | — | $ | (357 | ) | $ | (3,251 | ) | |||||||
Three-months ended September 30, 2013: | |||||||||||||||||||||||
Allowance for losses: | |||||||||||||||||||||||
Balance at beginning of period | $ | (182 | ) | $ | — | $ | (6,282 | ) | $ | — | $ | (293 | ) | $ | (6,757 | ) | |||||||
Provision for loss | 51 | 85 | (1,836 | ) | — | 10 | (1,690 | ) | |||||||||||||||
Charge-offs | 85 | — | 1,064 | — | — | 1,149 | |||||||||||||||||
Recoveries | — | (85 | ) | — | — | — | (85 | ) | |||||||||||||||
Balance at end of period | $ | (46 | ) | $ | — | $ | (7,054 | ) | $ | — | $ | (283 | ) | $ | (7,383 | ) | |||||||
Nine-months ended September 30, 2012: | |||||||||||||||||||||||
Allowance for losses: | |||||||||||||||||||||||
Balance at beginning of period | $ | (345 | ) | $ | (1 | ) | $ | (670 | ) | $ | — | $ | (5 | ) | $ | (1,021 | ) | ||||||
Provision for loss | (26 | ) | (48 | ) | (1,522 | ) | 75 | (366 | ) | (1,887 | ) | ||||||||||||
Charge-offs | 75 | 139 | 109 | — | 14 | 337 | |||||||||||||||||
Recoveries | (36 | ) | (90 | ) | (479 | ) | (75 | ) | — | (680 | ) | ||||||||||||
Other | — | — | — | — | — | — | |||||||||||||||||
Balance at end of period | $ | (332 | ) | $ | — | $ | (2,562 | ) | $ | — | $ | (357 | ) | $ | (3,251 | ) | |||||||
Individually evaluated for impairment | $ | (332 | ) | $ | — | $ | (313 | ) | $ | — | $ | — | $ | (645 | ) | ||||||||
Collectively evaluated for impairment | — | — | (2,249 | ) | — | (357 | ) | (2,606 | ) | ||||||||||||||
Balance at end of period | $ | (332 | ) | $ | — | $ | (2,562 | ) | $ | — | $ | (357 | ) | $ | (3,251 | ) | |||||||
VIE and other finance receivables, net: | |||||||||||||||||||||||
Individually evaluated for impairment | $ | 24,987 | $ | 65,764 | $ | 436 | $ | — | $ | — | $ | 91,187 | |||||||||||
Collectively evaluated for impairment | — | — | 53,749 | 4,800 | 3,458 | 62,007 | |||||||||||||||||
Ending Balance | $ | 24,987 | $ | 65,764 | $ | 54,185 | $ | 4,800 | $ | 3,458 | $ | 153,194 | |||||||||||
Nine-months ended September 30, 2013: | |||||||||||||||||||||||
Allowance for losses: | |||||||||||||||||||||||
Balance at beginning of period | $ | (181 | ) | $ | (6 | ) | $ | (4,194 | ) | $ | — | $ | (269 | ) | $ | (4,650 | ) | ||||||
Provision for loss | (88 | ) | 96 | (4,370 | ) | 2 | (14 | ) | (4,374 | ) | |||||||||||||
Charge-offs | 224 | 35 | 1,510 | — | — | 1,769 | |||||||||||||||||
Recoveries | (1 | ) | (125 | ) | — | (2 | ) | — | (128 | ) | |||||||||||||
Balance at end of period | $ | (46 | ) | $ | — | $ | (7,054 | ) | $ | — | $ | (283 | ) | $ | (7,383 | ) | |||||||
Individually evaluated for impairment | $ | (46 | ) | $ | — | $ | (2,095 | ) | $ | — | $ | — | $ | (2,141 | ) | ||||||||
Collectively evaluated for impairment | — | — | (4,959 | ) | — | (283 | ) | (5,242 | ) | ||||||||||||||
Balance at end of period | $ | (46 | ) | $ | — | $ | (7,054 | ) | $ | — | $ | (283 | ) | $ | (7,383 | ) | |||||||
VIE and other finance receivables, net: | |||||||||||||||||||||||
Individually evaluated for impairment | $ | 26,042 | $ | 59,732 | $ | 2,514 | $ | — | $ | — | $ | 88,288 | |||||||||||
Collectively evaluated for impairment | — | — | 43,020 | — | 2,197 | 45,217 | |||||||||||||||||
Ending Balance | $ | 26,042 | $ | 59,732 | $ | 45,534 | $ | — | $ | 2,197 | $ | 133,505 | |||||||||||
Management makes significant estimates in determining the allowance for losses on finance receivables. Consideration is given to a variety of factors in establishing these estimates, including current economic conditions and anticipated delinquencies. Since the allowance for losses is dependent on general and other economic conditions beyond the Company’s control, it is at least reasonably possible that the estimate for the allowance for losses could differ materially from the currently reported amount in the near term. At December 31, 2012 and September 30, 2013, the Company had impaired pre-settlement funding transactions in the amount of $2,521 and $3,453, respectively and has discontinued recognition of the income on these items. The Company had no impaired attorney cost financing advances as of December 31, 2012 and September 30, 2013, respectively. | |||||||||||||||||||||||
Pre-settlement funding transactions and attorney cost financing are usually outstanding for a period of time exceeding one year. The Company performs underwriting procedures to assess the quality of the underlying pending litigation collateral prior to entering into these transactions. The underwriting process involves an evaluation of each transaction’s case merits, counsel track record, and case concentration. | |||||||||||||||||||||||
The Company assesses the status of the individual pre-settlement funding transactions at least once every 120 days to determine whether there are any case specific concerns that need to be addressed and included in the allowance for losses on finance receivables. The Company also analyzes pre-settlement funding transactions on a portfolio basis based on the transactions’ age as the ability to collect is correlated to the duration of time the advances are outstanding. | |||||||||||||||||||||||
The following table presents gross pre-settlement funding transactions as of December 31, 2012 and September 30, 2013 based on their year of origination: | |||||||||||||||||||||||
Year of | December 31, 2012 | September 30, 2013 | |||||||||||||||||||||
Origination | |||||||||||||||||||||||
2009 | 6,276 | 5,270 | |||||||||||||||||||||
2010 | 9,891 | 6,116 | |||||||||||||||||||||
2011 | 17,770 | 11,978 | |||||||||||||||||||||
2012 | 28,838 | 19,522 | |||||||||||||||||||||
2013 | — | 12,574 | |||||||||||||||||||||
$ | 62,775 | $ | 55,460 | ||||||||||||||||||||
Based on historical portfolio experience, the Company has reserved for pre-settlement and attorney cost financing receivables of $4,194 and $269 as of December 31, 2012 and $7,054 and $283 as of September 30, 2013, respectively. | |||||||||||||||||||||||
The following table presents portfolio delinquency status as of December 30, 2012 and September 30, 2013, respectively: | |||||||||||||||||||||||
VIE and Other | |||||||||||||||||||||||
30-59 | 60-89 | Greater | VIE and Other | Finance | |||||||||||||||||||
Finance | Receivables, net | ||||||||||||||||||||||
Days | Days | than | Total | Receivables, | > 90 days | ||||||||||||||||||
Past Due | Past Due | 90 Days | Past Due | Current | net | accruing | |||||||||||||||||
December 31, 2012: | |||||||||||||||||||||||
Structured settlements and annuities | $ | 8 | $ | — | $ | 54 | $ | 62 | $ | 26,012 | $ | 26,074 | $ | — | |||||||||
Lottery winnings | — | — | — | — | 63,430 | 63,430 | — | ||||||||||||||||
Life insurance premium financing | — | — | — | — | 3,764 | 3,764 | — | ||||||||||||||||
Total | $ | 8 | $ | — | $ | 54 | $ | 62 | $ | 93,206 | $ | 93,268 | $ | — | |||||||||
September 30, 2013: | |||||||||||||||||||||||
Structured settlements and annuities | $ | — | $ | — | $ | 172 | $ | 172 | $ | 25,870 | $ | 26,042 | $ | — | |||||||||
Lottery winnings | — | — | — | — | 59,732 | 59,732 | — | ||||||||||||||||
Life insurance premium financing | — | — | — | — | — | — | — | ||||||||||||||||
Total | $ | — | $ | — | $ | 172 | $ | 172 | $ | 85,602 | $ | 85,774 | $ | — | |||||||||
Pre-settlement funding transactions and attorney cost financing do not have set due dates as payment is dependent on the underlying case settling. |
VIE_Borrowings_Under_Revolving
VIE Borrowings Under Revolving Credit Facilities and Other Similar Borrowings (Predecessor) | 9 Months Ended | |||||||||
Sep. 30, 2013 | ||||||||||
Predecessor | ' | |||||||||
VIE Borrowings Under Revolving Credit Facilities and Other Similar Borrowings | ' | |||||||||
7. VIE Borrowings Under Revolving Credit Facilities and Other Similar Borrowings | ||||||||||
At December 31, 2012 and September 30, 2013, VIE borrowings under revolving credit facilities and other similar borrowings on the condensed consolidated balance sheets consist of the following: | ||||||||||
December 31, | September 30, | |||||||||
Entity | 2012 | 2013 | ||||||||
$100 million variable funding note facility with interest payable monthly at 9.0%, collateralized by JGW-S III’s structured settlements receivables, 2-year revolving period with 18 months amortization period thereafter upon notice by the issuer or the note holder with all principal and interest outstanding payable no later than October 15, 2048. JGW-S III is charged monthly an unused fee of 1.00% per annum for the undrawn balance of its line of credit. | JGW-S III | $ | 183 | $ | 12,050 | |||||
$200 million credit facility, interest payable monthly at the rate greater of 5.00% or the sum of LIBOR plus applicable margin (5.0% at December 31, 2012 and September 30, 2013), maturing on February 17, 2016 , collateralized by JGW IV’s structured settlements and annuity receivables. JGW IV, LLC is charged monthly an unused fee of 0.50% per annum for the undrawn balance of its line of credit. | JGW IV | 4,171 | 10,231 | |||||||
$300 million multi-tranche and lender credit facility, interest payable monthly. The Facility was revised on July 24, 2013 as follows: Tranche A rate comprises 3.0% and either the LIBOR or the Commercial Paper rate depending on the lender (3.18% and 3.29% at September 30, 2013). Tranche B rate is 5.5% plus LIBOR (5.68% at September 30, 2013). The facility matures on July 24, 2016 and is collateralized by JGW V’s structured settlements and annuity receivables. JGW V, LLC is charged monthly an unused fee of 0.625% per annum for the undrawn balance of its line of credit. (1) | JGW V | 5,530 | 11,763 | |||||||
$40 million credit facility with interest payable monthly at the lender’s “prime rate” plus 1.00%, subject to a floor of 4.50% (4.5% at December 31, 2012 and September 30, 2013), maturing December 31, 2013. The line of credit is collateralized by certain pre-settlement receivables. Peach One is charged monthly an unused fee of 0.50% per annum for the undrawn balance of its line of credit. | Peach One | 17,527 | 15,124 | |||||||
Life settlements financing facility, interest payable quarterly at three-month Euribor plus 7.30% (7.49% at December 31, 2012). The facility was collateralized by assigned life settlement contracts from Immram and matured on August 23, 2013. | Skolvus 1 GMbh & Co. KG | (31 | ) | — | ||||||
$ | 27,380 | $ | 49,168 | |||||||
(1) The previous agreement provided for a $275 million facility, a Tranche A rate comprised of 3.50% and either the LIBOR or the Commercial Paper rate depending on the lender (3.71% or 3.90% at December 31, 2012), a Tranche B rate of 6.0% plus LIBOR (6.21% at December 31, 2012), and a monthly unused fee of 0.75% per annum for the undrawn balance of the line of credit. |
VIE_LongTerm_Debt
VIE Long-Term Debt (Predecessor) | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Predecessor | ' | |||||||
VIE Long-Term Debt | ' | |||||||
8. VIE Long-Term Debt | ||||||||
At December 31, 2012 and September 30, 2013, the VIE long-term debt consisted of the following: | ||||||||
December 31, 2012 | September 30, 2013 | |||||||
PLMT Permanent Facility | $ | 50,008 | $ | 48,241 | ||||
Residual Term Facility | 70,000 | 69,560 | ||||||
Long-Term Presettlement Facility | 20,289 | 13,861 | ||||||
2012-A Facility | 2,463 | 2,319 | ||||||
LCSS Facility (2010-C) | 12,880 | 12,880 | ||||||
LCSS Facility (2010-D) | 7,159 | 7,159 | ||||||
$ | 162,799 | $ | 154,020 | |||||
PLMT Permanent Facility | ||||||||
The Company has a $75,000 floating rate asset backed loan with interest payable monthly at one-month LIBOR plus 1.25% which is currently in a runoff mode with the outstanding balance being reduced by periodic cash collections on the underlying lottery receivables. The loan matures on November 1, 2038. | ||||||||
The debt agreement with the counterparty requires PLMT to hedge each lottery receivable with a pay fixed and receive variable interest rate swap with the counterparty. The swaps are recorded at fair value in VIE derivative liabilities, at fair market value on the condensed consolidated balance sheets. | ||||||||
Residual Term Facility | ||||||||
In September 2011, the Company issued term debt of $56,000 to a financial institution. In August 2012, the Company issued additional term debt of $14,000 to the same financial institution. The residual term debt is collateralized by notes receivable and the cash flows from securitization residuals related to certain securitizations. Interest on the residual term debt facility is payable monthly at 8.0% until September 15, 2014 and 9.0% thereafter. The $56,000 term debt matures on September 15, 2018 and the $14,000 term debt matures on September 15, 2019. Principal payments from collateral cash flows began in September 2013. In addition, the $56,000 term debt requires annual principal payments of $5,500 beginning on September 15, 2014 and continuing through 2018, the $14,000 term debt requires annual principal payments of $2,000 beginning on September 15, 2014 and continuing through 2019. | ||||||||
Long-Term Pre-settlement Facility | ||||||||
The Company has a $45,100 fixed rate note, of which, $20,289 is outstanding at December 31, 2012 and $13,861 is outstanding at September 30, 2013 and bearing interest at 9.25% annually. Interest and principal is payable monthly from the cash receipts of collateralized pre-settlement receivables. The note matures on June 6, 2016. | ||||||||
2012-A Facility | ||||||||
In December 2012, the Company issued a series of notes collateralized by structured settlements. The proceeds of the notes were $2,463 at a fixed interest rate of 9.25%. Interest and principal are payable monthly from cash receipts of collateralized structured settlement receivables. The notes mature on June 15, 2024. | ||||||||
Long-term Debt for Life Contingent Structured Settlements (2010-C & 2010-D) | ||||||||
LCSS Facility (2010-C) | ||||||||
In November 2010, the Company issued a private asset class securitization note registered under Rule 144A under the Securities Act of 1933, as amended (“Rule 144A”). The 2010-C bond issuance of $12,880 is collateralized by life-contingent structured settlements. 2010-C accrues interest at 10% per annum and matures on March 15, 2039. | ||||||||
The interest and, if available, principal payments are payable monthly from cash receipts of collateralized life-contingent structured settlements receivables. | ||||||||
LCSS Facility (2010-D) | ||||||||
In December 2010, the Company paid $155 to purchase the membership interests of LCSS, LLC from JLL Partners. LCSS, LLC owns 100% of the membership interests of LCSS II, which owns 100% of the membership interests of LCSS III. In November 2010, LCSS III issued $7,159 long-term debt 2010-D collateralized by life-contingent structured settlements. 2010-D accrues interest at 10% per annum and matures on July 15, 2040. | ||||||||
The interest and, if available, principal payments are payable monthly from cash receipts of collateralized life-contingent structured settlements receivables. |
VIE_Longterm_Debt_Issued_by_Se
VIE Long-term Debt Issued by Securitization and Permanent Financing trusts, at Fair Market Value (Predecessor) | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Predecessor | ' | |||||||||||||
VIE Long-term Debt Issued by Securitization and Permanent Financing trusts, at Fair Market Value | ' | |||||||||||||
9. VIE Long-term Debt Issued by Securitization and Permanent Financing trusts, at Fair Market Value | ||||||||||||||
Securitization Debt | ||||||||||||||
Effective January 1, 2010, upon consolidation of the securitization-related special purpose entities, the Company elected fair value treatment under ASC 825 to measure the securitization issuer debt and related finance receivables. The Company has determined that measurement of the securitization debt issued by SPEs at fair value better correlates with the value of the finance receivables held by SPEs, which are held to provide the cash flows for the note obligations. Debt issued by SPEs is non-recourse to other subsidiaries. Certain subsidiaries of the Company continue to receive fees for servicing the securitized assets. In addition, the risk to the Company’s non-SPE subsidiaries from SPE losses is limited to cash reserve and residual interest amounts. | ||||||||||||||
During the nine-months ended September 30, 2012, the Company completed two asset securitization transactions that were registered according to Rule 144A. The following table summarizes these securitization SPE transactions: | ||||||||||||||
2012-1 | ||||||||||||||
(bond proceeds in $ millions) | ||||||||||||||
Issue date | 3/16/12 | |||||||||||||
Bond proceeds | $232.40 | |||||||||||||
Receivables securitized | 4,476 | |||||||||||||
Deal discount rate | 4.62% | |||||||||||||
Retained interest % | 6.75% | |||||||||||||
Class allocation (Moody’s) | ||||||||||||||
Aaa | 85.00% | |||||||||||||
Baa2 | 8.25% | |||||||||||||
2012-2 | ||||||||||||||
(bond proceeds in $ millions) | ||||||||||||||
Issue date | 7/25/12 | |||||||||||||
Bond proceeds | $158.00 | |||||||||||||
Receivables securitized | 3,016 | |||||||||||||
Deal discount rate | 4.27% | |||||||||||||
Retained interest % | 6.75% | |||||||||||||
Class allocation (Moody’s) | ||||||||||||||
Aaa | 85.00% | |||||||||||||
Baa2 | 8.25% | |||||||||||||
During the nine-months ended September 30, 2013, the Company completed two asset securitization transactions that were registered according to Rule 144A. The following table summarizes these securitization SPE transactions: | ||||||||||||||
2013-1 | ||||||||||||||
(bond proceeds in $ millions) | ||||||||||||||
Issue date | 3/20/13 | |||||||||||||
Bond proceeds | $216.50 | |||||||||||||
Receivables securitized | 2,425 | |||||||||||||
Deal discount rate | 3.65% | |||||||||||||
Retained interest % | 6.75% | |||||||||||||
Class allocation (Moody’s) | ||||||||||||||
Aaa | 85.25% | |||||||||||||
Baa2 | 8.00% | |||||||||||||
2013-2 | ||||||||||||||
(bond proceeds in $ millions) | ||||||||||||||
Issue date | 7/30/13 | |||||||||||||
Bond proceeds | $174.60 | |||||||||||||
Receivables securitized | 3,410 | |||||||||||||
Deal discount rate | 4.49% | |||||||||||||
Retained interest % | 6.75% | |||||||||||||
Class allocation (Moody’s) | ||||||||||||||
Aaa | 85.25% | |||||||||||||
Baa2 | 8.00% | |||||||||||||
The following table summarizes notes issued by securitization and permanent financing trusts as of December 31, 2012 and September 30, 2013 for which the Company has elected the fair value option and are recorded as VIE long-term debt issued by securitization and permanent financing trusts, at fair market value in the Company’s condensed consolidated balance sheets: | ||||||||||||||
Outstanding Principal at | Outstanding | Fair Value at | Fair Value at | |||||||||||
Principal at | ||||||||||||||
December 31, 2012 | September 30, 2013 | December 31, 2012 | September 30, 2013 | |||||||||||
Securitization trusts | $ | 2,693,597 | $ | 2,913,160 | $ | 2,892,466 | $ | 3,095,261 | ||||||
Permanent financing VIEs | 319,382 | 320,609 | 337,125 | 342,600 | ||||||||||
Total | $ | 3,012,979 | $ | 3,233,769 | $ | 3,229,591 | $ | 3,437,861 |
Term_Loan_Payable
Term Loan Payable (Predecessor) | 9 Months Ended |
Sep. 30, 2013 | |
Predecessor | ' |
Term Loan Payable | ' |
10. Term Loan Payable | |
In connection with the OAC Merger, the Company assumed OAC’s term loan payable in the amount of $176,489, with interest payable at Eurodollar base rate plus applicable and additional margins (8.75% as of December 31, 2011 and 2012), maturing on November 21, 2013 (the “Term Loan”). As part of the merger, the credit agreement was amended and restated to allow OAC to make distributions of up to $9,000 to PGHI Corp. to fund the costs of defending certain litigation that remained a PGHI Corp. obligation post-merger and costs of operating certain subsidiaries of PGHI Corp. The amended and restated credit agreement required a $10,000 principal payment at the time of closing as well as specified consent payments to the lenders of the Term Loan. The amortization schedule was modified to provide accelerated repayment of the indebtedness and the consolidated leverage ratio and interest coverage ratio covenants were amended. Also, certain subsidiaries of the Company became guarantors pursuant to the terms of the amended and restated agreement. The collateral agreement relating to their guarantee calls for a security interest in the assets of the subsidiaries as collateral to the guarantee. The subsidiaries will be released from the collateral agreement once the Term Loan is paid in full. | |
Under the terms of the restated and amended Term Loan, the Company is prohibited, with certain exceptions, from making distributions or paying dividends. As a result, essentially none of the Company’s $442,818 in member’s capital was free of limitations on the payment of dividends as of December 31, 2012. | |
On February 8, 2013, the Term Loan was refinanced with a new senior secured credit facility (the “Credit Facility”) that consisted of a $425,000 term loan (the “New Term Loan”) and a $20,000 revolving commitment maturing in February 2019 and August 2017, respectively. The Company and certain of its subsidiaries are guarantors of the Credit Facility. Substantially all of the non-securitized and non-collateralized assets of the Company were pledged as security for the repayment of borrowings outstanding under the Credit Facility. | |
At each interest reset date, the Company has the option to elect that the New Term Loan be either a eurodollar loan or a base rate loan. If a eurodollar loan, interest on the New Term Loan accrues at either Libor or 1.5% (whichever is greater) plus a spread of 7.5%. If a base rate loan, interest accrues at prime or 2.5% (whichever is greater) plus a spread of 6.5%. As of September 30, 2013, the New Term Loan’s interest rate was 9.0%. The revolving commitment has the same interest rate terms as the New Term Loan. In addition, the revolving commitment is subject to an unused fee of 0.5% per annum and provides for the issuance of letters of credit equal to $10,000, subject to customary terms and fees. | |
The Credit Facility requires the Company, to the extent that as of the last day of any fiscal quarter outstanding balances on the revolving commitment exceed specific thresholds, to comply with a maximum total leverage ratio. As of September 30, 2013, there were no outstanding borrowings under the revolving commitment and, as a result, the maximum total leverage ratio requirement was not applicable. The Company and certain of its subsidiaries are also limited in engaging in certain activities, including mergers and acquisitions, incurrence of additional indebtedness, incurring liens, making investments, transacting with affiliates, disposing of assets, and various other activities. The Credit Facility also limits, with certain exceptions, certain of the Company’s subsidiaries from making cash dividends and loans to the Company. | |
In conjunction with the refinancing, the Company made a cash distribution to its members in the amount of $309.6 million as well as an asset distribution in the amount of $16.3 million to PGHI Corp. The distribution assets were originally acquired by the Company as part of the OAC Merger. | |
On May 31, 2013, the Credit Facility was amended to provide for an additional term loan of $150,000 on the same terms as the New Term Loan. In conjunction with this refinancing, the Company made a cash distribution to its members in the amount of $150,000. | |
As a result of the aggregate distributions the Company paid its members, each outstanding preferred interest was converted into one common interest on May 31, 2013 in accordance with the Amended and Restated Limited Liability Company Agreement of JGWPT Holdings, LLC. | |
Derivative_Financial_Instrumen
Derivative Financial Instruments (Predecessor) | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Predecessor | ' | |||||||||||||||
Derivative Financial Instruments | ' | |||||||||||||||
11. Derivative Financial Instruments | ||||||||||||||||
The Company has interest-rate swaps to manage its exposure to changes in interest rates related to borrowings on its revolving credit facilities. Hedge accounting has not been applied to any of its interest rate swaps. | ||||||||||||||||
As of September 30, 2013, the Company held an interest rate swap related to its JGW V revolving credit facility with a total notional value of $11,886. The Company pays a fixed rate of 2.74% and receives a floating rate equal to 1-month LIBOR rate. As of September 30, 2013, the term of this interest rate swap is approximately 15 years. | ||||||||||||||||
In March 2012 and 2013, and in connection with securitizations, the Company terminated $64,300 and $55,351, respectively, in interest rate swap notional value associated with its revolving credit facilities and other similar borrowings. In July 2012 and 2013, and in connection with securitizations, the Company terminated $32,036 and $45,690, respectively, in interest rate swap notional value associated with its revolving credit facilities and other similar borrowings. The total gain (loss) on the terminations of the interest rate swaps for the three-months ended September 30, 2012 and 2013 is ($831) and $525, respectively. The total gain (loss) on the terminations of the interest rate swaps for the nine-months ended September 30, 2012 and 2013 is ($457) and $351, respectively. The unrealized (loss) for these swaps for the three-months ended September 30, 2012 and 2013 was ($291) and ($696), respectively. The unrealized (loss) for these swaps for the nine-months ended September 30, 2012 and 2013 was ($641) and ($181), respectively. | ||||||||||||||||
The Company also has interest-rate swaps to manage its exposure to changes in interest rates related to its borrowings on certain long-term debt issued by securitization and permanent financing trusts. At December 31, 2012 and September 30, 2013, the Company had 8 outstanding swaps with total notional amounts of approximately $338,143 and $300,373, respectively. The Company pays fixed rates ranging from 4.50% to 5.77% and receives floating rates equal to 1-month LIBOR rate plus applicable margin. | ||||||||||||||||
These interest rate swaps were designed to closely match the borrowings under the respective floating rate asset backed loans in amortization. At September 30, 2013, the term of these interest rate swaps range from approximately 9 to approximately 22 years. For the three-months ended September 30, 2012 and 2013, the amount of unrealized gain recognized was $1,316 and $2,640, respectively. For the nine-months ended September 30, 2012 and 2013, the amount of unrealized gain recognized was $2,532 and $19,115, respectively. | ||||||||||||||||
Additionally, the Company has interest-rate swaps to manage its exposure to changes in interest rates related to its borrowings under Peachtree Structured Settlements, LLC, a permanent financing VIE (“PSS”) (Note 9) and PLMT (Note 8). At December 31, 2012 and September 30, 2013, the Company had 165 outstanding swaps with total notional amounts of approximately $266,881 and $254,397, respectively. The Company pays fixed rates ranging from 4.30% to 8.70% and receives floating rates equal to rate 1-month LIBOR rate plus applicable margin. | ||||||||||||||||
The PSS and PLMT interest rate swaps were designed to closely match the borrowings under the respective floating rate asset backed loans in amortization. At September 30, 2013, the term of the interest rate swaps for PSS and PLMT range from less than 1 month to approximately 21 years, respectively. For the three-months ended September 30, 2012 and 2013, the amount of unrealized gain (loss) recognized was ($441) and $2,289, respectively. For the nine-months ended September 30, 2012 and 2013, the amount of unrealized gain (loss) recognized was ($2,021) and $21,501, respectively. | ||||||||||||||||
The notional amounts and fair values of the Company’s interest rate swaps as of December 31, 2012 and September 30, 2013 are as follows: | ||||||||||||||||
Notional | Fair Market Value | Notional | Fair Market Value | |||||||||||||
Entity | Securitization | at December 31, 2012 | December 31, 2012 | at September 30, 2013 | September 30, 2013 | |||||||||||
321 Henderson I | 2004-A A-1 | $ | 50,858 | $ | (6,492 | ) | $ | 42,905 | $ | (4,313 | ) | |||||
321 Henderson I | 2005-1 A-1 | 86,766 | (14,362 | ) | 76,839 | (9,785 | ) | |||||||||
321 Henderson II | 2006-1 A-1 | 26,307 | (3,581 | ) | 22,107 | (2,442 | ) | |||||||||
321 Henderson II | 2006-2 A-1 | 27,560 | (5,181 | ) | 24,552 | (3,625 | ) | |||||||||
321 Henderson II | 2006-3 A-1 | 30,493 | (5,001 | ) | 27,058 | (3,471 | ) | |||||||||
321 Henderson II | 2006-4 A-1 | 27,402 | (4,271 | ) | 24,701 | (3,009 | ) | |||||||||
321 Henderson II | 2007-1 A-1 | 42,670 | (9,031 | ) | 39,613 | (6,093 | ) | |||||||||
321 Henderson II | 2007-2 A-1 | 46,087 | (13,072 | ) | 42,598 | (9,174 | ) | |||||||||
JGW V, LLC | — | — | — | 11,886 | (181 | ) | ||||||||||
PSS | — | 205,180 | (46,407 | ) | 196,094 | (29,195 | ) | |||||||||
PLMT | — | 61,701 | (14,100 | ) | 58,303 | (9,837 | ) | |||||||||
Total | $ | 605,024 | $ | (121,498 | ) | $ | 566,656 | $ | (81,125 | ) |
Risks_and_Uncertainties
Risks and Uncertainties (Predecessor) | 9 Months Ended |
Sep. 30, 2013 | |
Predecessor | ' |
Risks and Uncertainties | ' |
12. Risks and Uncertainties | |
The Company’s finance receivables are primarily obligations of insurance companies. The exposure to credit risk with respect to these finance receivables is generally limited due to the large number of insurance companies of generally high credit quality comprising the receivable base, their dispersion across geographical areas, and possible availability of state insurance guarantee funds. The Company is also subject to numerous risks associated with structured settlements. These risks include, but are not limited to, restrictions on assignability of structured settlements, potential changes in the U.S. tax law related to taxation of structured settlements, diversion by a seller of scheduled payments to the Company, and other potential risks of regulation and/or legislation. A majority of states have regulated the business by passing statutes that govern the sale of structured settlement payments. Generally, the laws require a court approval to consummate a sale. The Company’s earnings are dependent upon the fair value of the finance receivables it purchases relative to the value it can obtain by financing these assets in securitization or other transactions. Accordingly, earnings are subject to risks and uncertainties surrounding exposure to changes in the interest rate environment, competitive pressures affecting the ability to maintain sufficient effective purchase yields, and the ability to sell or securitize finance receivables at profitable levels in the future. | |
Commitments_and_Contingencies
Commitments and Contingencies (Predecessor) | 9 Months Ended |
Sep. 30, 2013 | |
Predecessor | ' |
Commitments and Contingencies | ' |
13. Commitments and Contingencies | |
In accordance with Structured Receivables Finance #6, LLC, a permanent financing VIE (“SRF6”) (Note 9), the Company is required to fund a Hedge Breakage Reserve Account to the extent that the Lender has entered into hedges and such hedges subsequently incur negative valuations. The Hedge Breakage Reserve Account serves as collateral in the event the Company elects to repay in full the associated VIE debt issued by the permanent financing trust and the Lender incurs costs from the early termination of any related hedges. As of December 31, 2012 and September 30, 2013, this account had a balance of $11,847 and $3,682, respectively. The Lender also has a Right of First Refusal to purchase 25% of any securitization notes at current market terms when such a securitization contains Eligible Receivables financed under the SRF6 Loan Agreement. | |
The Company had an arrangement (the “Arrangement”) with a counterparty for the sale of LCSS assets that meet certain eligibility criteria. The Arrangement called for the counterparty to utilize funds raised of up to $50,000 to purchase LCSS assets from the Company. The Arrangement expired on June 30, 2012. For the year ended December 31, 2012, the counterparty purchased approximately $3,150 of LCSS assets from the Company which substantially met the counterparty’s current purchase capacity. Pursuant to the Arrangement, the Company also has a borrowing agreement (the “Borrowing Agreement”) with the counterparty that gives the counterparty a borrowing base to draw on from the Company for the purchase of LCSS assets. The borrowing capacity is capped at a percentage of total funds raised by the counterparty or $11,300, whichever is lower. As of December 31, 2012 and September 30, 2013, the amount owed from the counterparty pursuant to this Borrowing Agreement is approximately $8,637 and $9,008, respectively and is earning interest at an annual rate of 5.35% and is included in other receivables, net of allowance for losses in the Company’s condensed consolidated balance sheets. | |
The Arrangement also has put options, which expire on December 30, 2019 and 2020, that gives the counterparty the option to sell purchased LCSS assets back to the Company. The put options, if exercised by the counterparty, require the Company to purchase LCSS assets at a target IRR of 3.5% above the original target IRR paid by the counterparty. | |
In the normal course of business, the Company is subject to various legal proceedings and claims, the resolution of which, in management’s opinion, will not have a material adverse effect on the financial position, the results of operations or cash flows of the Company. | |
Segment_Reporting
Segment Reporting (Predecessor) | 9 Months Ended |
Sep. 30, 2013 | |
Predecessor | ' |
Segment Reporting | ' |
14. Segment Reporting | |
ASC 280, Segment Reporting, establishes standards for segment reporting in the financial statements. Management has determined that all of the operations have similar economic characteristics and may be aggregated into a single segment for disclosure under ASC 280. | |
Income_Taxes
Income Taxes (Predecessor) | 9 Months Ended |
Sep. 30, 2013 | |
Predecessor | ' |
Income Taxes | ' |
15. Income Taxes | |
The Company and the majority of its subsidiaries operate in the U.S. as non-income tax paying entities, and are treated as pass-through entities for U.S. federal income tax purposes and generally as corporate entities in non-U.S. jurisdictions. In addition, certain of the Company’s wholly owned subsidiaries operate as corporations within the U.S. and are subject to U.S. federal and state income tax. As non-income tax paying entities, the majority of the Company’s net income or loss is included in the individual or corporate returns of JGWPT’s Members. The current and deferred taxes relates only to the income tax-paying entities of the Company. | |
Restructure_Expense
Restructure Expense (Predecessor) | 9 Months Ended | ||||
Sep. 30, 2013 | |||||
Predecessor | ' | ||||
Restructure Expense | ' | ||||
16. Restructure Expense | |||||
In April 2013, the Company announced its intention to close its Boynton Beach office. In connection with the announcement, the Company recorded a restructure charge of $3,224 for primarily severance and related expense. The $3,224 charge for the nine-months ended September 30, 2013 was recorded in the following statement of operations line items: compensation and benefits, $2,851; and general and administrative, $373. The associated workforce reductions were substantially complete as of September 30, 2013 and the remaining actions are expected to be completed by December 31, 2013. A reconciliation of the associated restructure liability is as follows: | |||||
Total | |||||
Balance at December 31, 2012 | $ | — | |||
Restructure expense | 3,224 | ||||
Payments for restructure charges | (2,456 | ) | |||
Balance at September 30, 2013 | $ | 768 |
Subsequent_Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2013 | |
Subsequent Events | ' |
4. SUBSEQUENT EVENTS | |
On November 14, 2013, the Corporation consummated an initial public offering whereby 11,212,500 shares of its Class A common stock, par value $0.00001 per share (the “Class A Shares”), were sold to the public for net proceeds of $141.4 million, after payment of underwriting discounts and estimated offering expenses. The 11,212,500 shares sold were inclusive of 1,462,500 Class A Shares sold pursuant to the full exercise of an overallotment option granted to the underwriters which was consummated on December 11, 2013. The net proceeds from the initial public offering were used purchase 11,212,500 newly issued JGWPT Holdings, LLC common interests directly from JGWPT Holdings, LLC representing 37.9% of the then outstanding membership interests of JGWPT Holdings, LLC. Concurrently with the consummation of the Corporation’s initial public offering, the Corporation amended and restated its certificate of incorporation to provide for, among other things, the issuance of Class A Shares, shares of Class B common stock, par value $0.00001 per share (the “Class B Shares”), and shares of Class C common stock, par value $0.00001 per share (the “Class C Shares”). Also concurrently with the consummation of the Corporation’s initial public offering, JGWPT Holdings, LLC merged with and into a newly formed subsidiary of the Corporation and the surviving, newly formed subsidiary changed its name to JGWPT Holdings, LLC. | |
Pursuant to this merger, the operating agreement of JGWPT Holdings, LLC was amended and restated such that, among other things, (i) the Corporation became the sole managing member of JGWPT Holdings, LLC, (ii) JGWPT Holdings, LLC common interests became exchangeable for one Class A Share, or in the case of Peach Group Holdings, Inc. (“PGHI Corp.”), one share of the Corporation’s Class C Shares. Additionally, in connection with merger, each holder of JGWPT Holdings, LLC common interests, other than PGHI Corp., was issued an equivalent number of shares of the Corporation’s “vote-only” Class B Shares. As a result of these transactions, as of and subsequent to November 14, 2013, the Corporation will consolidate the financial results of JGWPT Holdings, LLC with its own and reflect the 62.1% membership interest in JGWPT Holdings, LLC it does not own as a non-controlling interest in its consolidated financial statements. | |
Predecessor | ' |
Subsequent Events | ' |
17. Subsequent Events | |
On October, 2, 2013, the Company amended the terms of its $200 million credit facility to provide for an interest rate equal to the sum of one-month LIBOR plus an applicable margin equal to 3.25% and a final maturity date of April 2, 2017. The Company subsequently elected on December 18, 2013 to reduce the size of this credit facility to $50 million. | |
On October 21, 2013, the Company revised the terms of its $40 million credit facility to provide for a maturity date of December 31, 2014 and a maximum borrowing capacity of $35 million. | |
On October 10, 2013, the Company priced its 2013-3 securitization. The aggregate issuance amount of the 2013-3 securitization was $212.7 million and the discount rate was 4.37%. The 2013-3 securitization closed on October 18, 2013. In connection with its 2013-3 securitization, the Company repaid approximately $64.0 million of long term debt issued by SRF 6, a permanent financing VIE, and recorded a gain on debt extinguishment of approximately $22.3 million. As a result of the repayment of debt, the Company was required to pay approximately $3.4 million in various prepayment fees and approximately $4.5 million for hedge breakage costs (Note 13). | |
On November 14, 2013, the Corporation consummated an initial public offering whereby 11,212,500 Class A Shares were sold to the public for net proceeds of $141.4 million, after payment of underwriting discounts and estimated offering expenses. The 11,212,500 shares sold were inclusive of 1,462,500 Class A Shares sold pursuant to the full exercise of an overallotment option granted to the underwriters which was consummated on December 11, 2013. The net proceeds from the initial public offering were used to purchase 11,212,500 newly issued JGWPT common interests directly from JGWPT Holdings, LLC representing 37.9% of the then outstanding membership interests of JGWPT Holdings, LLC. Concurrently with the consummation of the Corporation’s initial public offering, JGWPT Holdings, LLC merged with and into a newly formed subsidiary of the Corporation and the surviving, newly formed subsidiary changed its name to JGWPT Holdings, LLC. | |
Pursuant to this merger, the operating agreement of JGWPT Holdings, LLC was amended and restated such that, among other things, (i) the Corporation became the sole managing member of JGWPT Holdings, LLC, (ii) JGWPT Holdings, LLC common interests became exchangeable for one Class A Share, or in the case of PGHI Corp., one share of the Corporation’s Class C Shares. Additionally, in connection with merger, each holder of JGWPT Holdings, LLC common interests, other than PGHI Corp., was issued an equivalent number of shares of the Corporation’s “vote-only” Class B Shares. As a result of these transactions, as of and subsequent to November 14, 2013, the Corporation will consolidate the financial results of JGWPT Holdings, LLC with its own and reflect the 62.1% membership interest in JGWPT Holdings, LLC it does not own as a non-controlling interest in its consolidated financial statements. | |
On November 15, 2013, the Company entered into a $300 million credit facility with a financial institution that provides for interest payable monthly at either: (a) the one-month LIBOR or (b) the lender’s commercial paper rate (as defined) plus 2.75%. The credit facility is collateralized by JGW VII, LLC’s structured settlements, annuity, and lottery receivables. The credit agreement also provides for a three-year revolving period with a twenty-four month amortization period thereafter upon notice by the issuer or the borrower with all principal and interest outstanding payable no later than November 15, 2018. The Company is charged monthly an unused line fee of 0.50% per annum for the undrawn balance of the line of credit. | |
On December 6, 2013, the Company repaid $123 million of its New Term Loan from the proceeds of its initial public offering and amended the terms of the associated Credit Facility. The amendment, among other things: (i) reduced the applicable margin on the initial term loans from 7.50% to 6.00% for eurodollar loans and from 6.50% to 5.00% for base rate loans, and (ii) reduced the interest rate floor on the initial term loans from 1.50% to 1.00% for eurodollar loans and from 2.50% to 2.00% for base rate loans. No changes were made to the financial covenants contained in the original Credit Facility and as a result of the repayment, no further principal payments are required to be made on the New Term Loan until its maturity in February 2019. In connection with the repayment and amendment of the New Term Loan, the Company paid approximately $13.0 million in amendment, legal and other fees. | |
Recently_Issued_Accounting_Sta1
Recently Issued Accounting Statements (Tables) (Predecessor) | 9 Months Ended | ||||||
Sep. 30, 2013 | |||||||
Predecessor | ' | ||||||
Schedule of reclassifications out of accumulated other comprehensive income | ' | ||||||
The Company did record the following reclassifications out of accumulated other comprehensive income during the nine-months ended September 30, 2013 as a result of the associated notes maturing during the period: | |||||||
Details about accumulated other | Amount reclassified | Affected line item in the | |||||
comprehensive income components | from accumulated | statement of operations | |||||
other | |||||||
comprehensive | |||||||
income | |||||||
Unrealized gains and losses on available-for-sale securities | $ | 1,862 | Realized loss on notes receivable, at fair market value | ||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) (Predecessor) | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Predecessor | ' | |||||||||||||
Schedule of fair value and amortized costs of notes receivable | ' | |||||||||||||
December 31, 2012 | September 30, 2013 | |||||||||||||
Amortized cost | $ | 8,297 | $ | 6,175 | ||||||||||
Fair market value | $ | 8,074 | $ | 6,238 | ||||||||||
Schedule of fair value of assets and liabilities | ' | |||||||||||||
Quoted Prices in | Significant Other | Significant | Total | |||||||||||
Active Markets for | Observable Inputs | Unobservable | ||||||||||||
Identical Assets | Inputs | |||||||||||||
Level I | Level II | Level III | at Fair Value | |||||||||||
December 31, 2012: | ||||||||||||||
Assets | ||||||||||||||
Marketable securities: | ||||||||||||||
Equity securities | ||||||||||||||
US large cap | $ | 40,446 | $ | — | $ | — | $ | 40,446 | ||||||
US mid cap | 8,472 | — | — | 8,472 | ||||||||||
US small cap | 9,224 | — | — | 9,224 | ||||||||||
International | 22,651 | — | — | 22,651 | ||||||||||
Other equity | 789 | — | — | 789 | ||||||||||
Total equity securities | 81,582 | — | — | 81,582 | ||||||||||
Fixed income securities | ||||||||||||||
US fixed income | 36,047 | — | — | 36,047 | ||||||||||
International fixed income | 5,963 | — | — | 5,963 | ||||||||||
Other fixed income | 11 | — | — | 11 | ||||||||||
Total fixed income securities | 42,021 | — | — | 42,021 | ||||||||||
Other securities | ||||||||||||||
Cash & cash equivalents | 4,789 | — | — | 4,789 | ||||||||||
Alternative investments | 483 | — | — | 483 | ||||||||||
Annuities | 2,239 | — | — | 2,239 | ||||||||||
Total other securities | 7,511 | — | — | 7,511 | ||||||||||
Total marketable securities | 131,114 | — | — | 131,114 | ||||||||||
VIE and other finance receivables, at fair market value | — | — | 3,615,188 | 3,615,188 | ||||||||||
Notes receivable, at fair market value | — | — | 8,074 | 8,074 | ||||||||||
Life settlement contracts, at fair market value (1) | — | — | 1,724 | 1,724 | ||||||||||
Total Assets | $ | 131,114 | $ | — | $ | 3,624,986 | $ | 3,756,100 | ||||||
Liabilities | ||||||||||||||
VIE long-term debt issued by securitization and permanent financing trusts, at fair market value | $ | — | $ | — | $ | 3,229,591 | $ | 3,229,591 | ||||||
VIE derivative liabilities, at fair market value | — | 121,498 | — | 121,498 | ||||||||||
Total Liabilities | $ | — | $ | 121,498 | $ | 3,229,591 | $ | 3,351,089 | ||||||
September 30, 2013: | ||||||||||||||
Assets | ||||||||||||||
Marketable securities: | ||||||||||||||
Equity securities | ||||||||||||||
US large cap | $ | 44,765 | $ | — | $ | — | $ | 44,765 | ||||||
US mid cap | 9,125 | — | — | 9,125 | ||||||||||
US small cap | 10,481 | — | — | 10,481 | ||||||||||
International | 22,233 | — | — | 22,233 | ||||||||||
Other equity | 821 | — | — | 821 | ||||||||||
Total equity securities | 87,425 | — | — | 87,425 | ||||||||||
Fixed income securities | ||||||||||||||
US fixed income | 33,263 | — | — | 33,263 | ||||||||||
International fixed income | 5,303 | — | — | 5,303 | ||||||||||
Other fixed income | 30 | — | — | 30 | ||||||||||
Total fixed income securities | 38,596 | — | — | 38,596 | ||||||||||
Other securities | ||||||||||||||
Cash & cash equivalents | 3,754 | — | — | 3,754 | ||||||||||
Alternative investments | 645 | — | — | 645 | ||||||||||
Annuities | 2,193 | — | — | 2,193 | ||||||||||
Total other securities | 6,592 | — | — | 6,592 | ||||||||||
Total marketable securities | 132,613 | — | — | 132,613 | ||||||||||
VIE and other finance receivables, at fair market value | — | — | 3,888,893 | 3,888,893 | ||||||||||
Notes receivable, at fair market value | — | — | 6,238 | 6,238 | ||||||||||
Total Assets | $ | 132,613 | $ | — | $ | 3,895,131 | $ | 4,027,744 | ||||||
Liabilities | ||||||||||||||
VIE long-term debt issued by securitization and permanent financing trusts, at fair market value | $ | — | $ | — | $ | 3,437,861 | $ | 3,437,861 | ||||||
VIE derivative liabilities, at fair market value | — | 81,125 | 81,125 | |||||||||||
Total Liabilities | $ | — | $ | 81,125 | $ | 3,437,861 | $ | 3,518,986 | ||||||
(1) Included in other assets on the Company’s condensed consolidated balance sheets. | ||||||||||||||
Schedule of the Company's quantitative information about Level 3 fair value measurements | ' | |||||||||||||
December 31, 2012: | Fair Value | Valuation Technique | Unobservable Input | Range (Weighted Avg) | ||||||||||
Assets | ||||||||||||||
VIE and other finance receivables, at fair market value | $ | 3,615,188 | Discounted cash flow | Discount rate | 2.68% - 12.52% (3.99%) | |||||||||
Notes receivable, at fair market value | 8,074 | Discounted cash flow | Discount rate | 9.78% (9.78%) | ||||||||||
Life settlement contracts, at fair market value | 1,724 | Model actuarial pricing | Life expectancy Discount rate | 16 to 260 months (147) 18.50% (18.50%) | ||||||||||
Total Assets | $ | 3,624,986 | ||||||||||||
Liabilities | ||||||||||||||
VIE long-term debt issued by securitization and permanent financing trusts, at fair market value | $ | 3,229,591 | Discounted cash flow | Discount rate | 0.53% - 12.38% (3.43%) | |||||||||
Total Liabilities | $ | 3,229,591 | ||||||||||||
September 30, 2013: | Fair Value | Valuation Technique | Unobservable Input | Range (Weighted Avg) | ||||||||||
Assets | ||||||||||||||
VIE and other finance receivables, at fair market value | $ | 3,888,893 | Discounted cash flow | Discount rate | 2.59% - 12.98% (3.99%) | |||||||||
Notes receivable, at fair market value | 6,238 | Discounted cash flow | Discount rate | 7.71% (7.71%) | ||||||||||
Life settlement contracts, at fair market value | — | Model actuarial pricing | Life expectancy Discount rate | 7 to 251 months (140) 18.50% (18.50%) | ||||||||||
Total Assets | $ | 3,895,131 | ||||||||||||
Liabilities | ||||||||||||||
VIE long-term debt issued by securitization and permanent financing trusts, at fair market value | $ | 3,437,861 | Discounted cash flow | Discount rate | 0.74% - 12.67% (3.60%) | |||||||||
Total Liabilities | $ | 3,437,861 | ||||||||||||
Schedule of changes in assets measured at fair value using significant unobservable inputs (Level 3) | ' | |||||||||||||
VIE and other | Life settlement | Notes receivable, at | Total | |||||||||||
finance receivables, | contracts, at fair | fair market value | ||||||||||||
at fair market value | market value | |||||||||||||
Balance at December 31, 2011 | $ | 3,041,090 | $ | 6,214 | $ | 12,765 | $ | 3,060,069 | ||||||
Total gains (losses): | ||||||||||||||
Included in earnings / losses | 346,746 | (517 | ) | — | 346,229 | |||||||||
Included in other comprehensive gain | — | — | 279 | 279 | ||||||||||
Purchases | 259,005 | — | — | 259,005 | ||||||||||
Premiums paid | — | 935 | — | 935 | ||||||||||
Sales | (447 | ) | (3,917 | ) | — | (4,364 | ) | |||||||
Lapsed policies | — | — | — | — | ||||||||||
Interest accreted | 111,798 | — | — | 111,798 | ||||||||||
Payments received | (303,721 | ) | — | (3,453 | ) | (307,174 | ) | |||||||
Maturities | — | — | — | — | ||||||||||
Transfers in and/or out of Level 3 | — | — | — | — | ||||||||||
Balance at September 30, 2012 | $ | 3,454,471 | $ | 2,715 | $ | 9,591 | $ | 3,466,777 | ||||||
The amount of total gains (losses) for the period included in earnings attributable to the change in unrealized gains or losses relating to assets still held at: | ||||||||||||||
September 30, 2012 | $ | 346,155 | $ | (132 | ) | $ | — | $ | 346,023 | |||||
Balance at December 31, 2012 | $ | 3,615,188 | $ | 1,724 | $ | 8,074 | $ | 3,624,986 | ||||||
Total gains (losses): | ||||||||||||||
Included in earnings / losses | 197,429 | (22 | ) | — | 197,407 | |||||||||
Included in other comprehensive gain | — | — | 502 | 502 | ||||||||||
Purchases | 300,452 | — | — | 300,452 | ||||||||||
Premiums paid | — | 241 | — | 241 | ||||||||||
Sales | — | — | — | — | ||||||||||
Lapsed policies | — | — | — | — | ||||||||||
Interest accreted | 107,784 | — | — | 107,784 | ||||||||||
Payments received | (322,345 | ) | — | (2,338 | ) | (324,683 | ) | |||||||
Maturities | — | (51 | ) | — | (51 | ) | ||||||||
Asset distribution | (9,615 | ) | (1,892 | ) | — | (11,507 | ) | |||||||
Transfers in and/or out of Level 3 | — | — | — | — | ||||||||||
Balance at September 30, 2013 | $ | 3,888,893 | $ | — | $ | 6,238 | $ | 3,895,131 | ||||||
The amount of total gains (losses) for the period included in earnings attributable to the change in unrealized gains or losses relating to assets still held at: | ||||||||||||||
September 30, 2013 | $ | 197,429 | $ | 31 | $ | — | $ | 197,460 | ||||||
Schedule of changes in liabilities measured at fair value using significant unobservable inputs (Level 3) | ' | |||||||||||||
VIE long-term debt issued | ||||||||||||||
by securitizations and | ||||||||||||||
permanent financing trusts | ||||||||||||||
Balance at December 31, 2011 | $ | 2,663,873 | ||||||||||||
Total (gains) losses: | ||||||||||||||
Included in earnings / losses | 157,998 | |||||||||||||
Issuances | 400,881 | |||||||||||||
Interest accreted | (25,207 | ) | ||||||||||||
Repayments | (169,693 | ) | ||||||||||||
Transfers in and/or out of Level 3 | — | |||||||||||||
Balance at September 30, 2012 | $ | 3,027,852 | ||||||||||||
The amount of total (gains) losses for the period included in earnings attributable to the change in unrealized gains or losses relating to long- term debt still held at: | ||||||||||||||
September 30, 2012 | $ | 157,998 | ||||||||||||
Balance at December 31, 2012 | $ | 3,229,591 | ||||||||||||
Total (gains) losses: | ||||||||||||||
Included in earnings / losses | 23,769 | |||||||||||||
Issuances | 406,240 | |||||||||||||
Interest accreted | (35,863 | ) | ||||||||||||
Repayments | (185,876 | ) | ||||||||||||
Transfers in and/or out of Level 3 | — | |||||||||||||
Balance at September 30, 2013 | $ | 3,437,861 | ||||||||||||
The amount of total (gains) losses for the period included in earnings attributable to the change in unrealized gains or losses relating to long- term debt still held at: | ||||||||||||||
September 30, 2013 | $ | 23,769 | ||||||||||||
Schedule of realized and unrealized gains and losses included in earnings in the accompanying consolidated statements of operations | ' | |||||||||||||
VIE and other finance | Life settlement | |||||||||||||
receivables and long- | contracts income | |||||||||||||
term debt | ||||||||||||||
Total gains (losses) included in earnings in the three months ended September 30, 2012 | $ | 57,142 | $ | 183 | ||||||||||
Change in unrealized gains (losses) in the three months ended September 30, 2012 relating to assets still held at the reporting date | $ | 57,142 | $ | 183 | ||||||||||
Total gains (losses) included in earnings in the three months ended September 30, 2013 | $ | 46,020 | $ | 51 | ||||||||||
Change in unrealized gains (losses) in the three months ended September 30, 2013 relating to assets still held at the reporting date | $ | 46,020 | $ | 51 | ||||||||||
Total gains (losses) included in earnings in the nine months ended September 30, 2012 | $ | 188,748 | $ | (517 | ) | |||||||||
Change in unrealized gains (losses) in the nine months ended September 30, 2012 relating to assets still held at the reporting date | $ | 188,157 | $ | (132 | ) | |||||||||
Total gains (losses) included in earnings in the nine months ended September 30, 2013 | $ | 173,660 | $ | (22 | ) | |||||||||
Change in unrealized gains (losses) in the nine months ended September 30, 2013 relating to assets still held at the reporting date | $ | 173,660 | $ | 31 | ||||||||||
Schedule of estimated fair values of financial instruments | ' | |||||||||||||
December 31, | September 30, | |||||||||||||
2012 | 2013 | |||||||||||||
Estimated | Estimated | |||||||||||||
Fair | Carrying | Fair | Carrying | |||||||||||
Value | Amount | Value | Amount | |||||||||||
Financial assets | ||||||||||||||
Marketable securities | $ | 131,114 | $ | 131,114 | $ | 132,613 | $ | 132,613 | ||||||
VIE and other finance receivables, at fair market value | 3,615,188 | 3,615,188 | 3,888,893 | 3,888,893 | ||||||||||
VIE and other finance receivables, net of allowance for losses (1) | 145,155 | 150,353 | 127,413 | 133,505 | ||||||||||
Life settlement contracts, at fair market value | 1,724 | 1,724 | — | — | ||||||||||
Notes receivable, at fair market value | 8,074 | 8,074 | 6,238 | 6,238 | ||||||||||
Notes receivable, due from affiliate (1) | 5,243 | 5,243 | — | — | ||||||||||
Other receivables, net of allowance for losses (1) | 13,146 | 13,146 | 14,269 | 14,269 | ||||||||||
Financial liabilities | ||||||||||||||
VIE derivative liabilities, at fair market value | 121,498 | 121,498 | 81,125 | 81,125 | ||||||||||
VIE borrowings under revolving credit facilities and other similar borrowings (1) | 28,198 | 27,380 | 50,655 | 49,168 | ||||||||||
VIE long-term debt (1) | 158,801 | 162,799 | 149,954 | 154,020 | ||||||||||
VIE long-term debt issued by securitization and permanent financing trusts, at fair market value | 3,229,591 | 3,229,591 | 3,437,861 | 3,437,861 | ||||||||||
Installment obligations payable (1) | 131,114 | 131,114 | 132,613 | 132,613 | ||||||||||
Term loan payable (1) | 142,441 | 142,441 | 556,422 | 556,422 | ||||||||||
(1) These represent financial instruments not recorded in the condensed consolidated balance sheets at fair value. Such financial instruments would be classified as Level 3 within the fair value hierarchy. |
VIE_and_Other_Finance_Receivab2
VIE and Other Finance Receivables, at Fair Market Value (Tables) (Predecessor) | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Predecessor | ' | |||||||||||||
Schedule of VIE and other finance receivables for which the fair value option was elected | ' | |||||||||||||
December 31, 2012 | September 30, 2013 | |||||||||||||
Maturity value | $ | 5,335,328 | $ | 5,784,472 | ||||||||||
Unearned income | (1,720,140 | ) | (1,895,579 | ) | ||||||||||
Net carrying amount | $ | 3,615,188 | $ | 3,888,893 | ||||||||||
Schedule of encumbrances on VIE and other finance receivables, at fair value | ' | |||||||||||||
Encumbrance | December 31, 2012 | September 30, 2013 | ||||||||||||
VIE securitization debt (2) | $ | 3,550,394 | $ | 3,773,189 | ||||||||||
$100 million credit facility (1) | 230 | 19,014 | ||||||||||||
$200 million credit facility (1) | 7,059 | 13,924 | ||||||||||||
$300 million credit facility (1) | 8,277 | 19,480 | ||||||||||||
$50 million permanent financing related to 2011-A | 20,505 | 36,005 | ||||||||||||
Total VIE finance receivables at fair value | 3,586,465 | 3,861,612 | ||||||||||||
Not encumbered | 28,723 | 27,281 | ||||||||||||
Total VIE and other finance receivables at fair value | $ | 3,615,188 | $ | 3,888,893 | ||||||||||
(1) See Note 7 | ||||||||||||||
(2) See Note 9 | ||||||||||||||
Schedule of servicing fee | ' | |||||||||||||
Three-Months Ended September 30, | Nine-Months Ended September 30, | |||||||||||||
2012 | 2013 | 2012 | 2013 | |||||||||||
Servicing fees | $ | 258 | $ | 239 | $ | 803 | $ | 714 | ||||||
VIE_and_Other_Finance_Receivab3
VIE and Other Finance Receivables, net of Allowance for Losses (Tables) (Predecessor) | 9 Months Ended | ||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||
Predecessor | ' | ||||||||||||||||||||||
Schedule of VIE and other finance receivables, net of allowance for losses | ' | ||||||||||||||||||||||
December 31, 2012 | September 30, 2013 | ||||||||||||||||||||||
Structured settlements and annuities | $ | 79,653 | $ | 76,640 | |||||||||||||||||||
Less: unearned income | (53,398 | ) | (50,552 | ) | |||||||||||||||||||
26,255 | 26,088 | ||||||||||||||||||||||
Lottery winnings | 97,204 | 89,232 | |||||||||||||||||||||
Less: unearned income | (33,768 | ) | (29,500 | ) | |||||||||||||||||||
63,436 | 59,732 | ||||||||||||||||||||||
Pre-settlement funding transactions | 62,775 | 55,460 | |||||||||||||||||||||
Less: deferred revenue | (4,296 | ) | (2,872 | ) | |||||||||||||||||||
58,479 | 52,588 | ||||||||||||||||||||||
Life insurance premium financing | 3,807 | — | |||||||||||||||||||||
Less: deferred revenue | (43 | ) | — | ||||||||||||||||||||
3,764 | — | ||||||||||||||||||||||
Attorney cost financing | 3,072 | 2,480 | |||||||||||||||||||||
Less: deferred revenue | (3 | ) | — | ||||||||||||||||||||
3,069 | 2,480 | ||||||||||||||||||||||
VIE and other finance receivables, gross | 155,003 | 140,888 | |||||||||||||||||||||
Less: allowance for losses | (4,650 | ) | (7,383 | ) | |||||||||||||||||||
VIE and other finance receivables, net | $ | 150,353 | $ | 133,505 | |||||||||||||||||||
Schedule of encumbrances on VIE and other finance receivables, net | ' | ||||||||||||||||||||||
Encumbrance | December 31, 2012 | September 30, 2013 | |||||||||||||||||||||
VIE securitization debt (2) | $ | 80,826 | $ | 79,193 | |||||||||||||||||||
$40 million pre-settlement credit facility (1) | 25,859 | 23,463 | |||||||||||||||||||||
$45.1 million long-term presettlement facility (2) | 19,389 | 12,775 | |||||||||||||||||||||
$2.4 million long-term facility (2) | 2,663 | 2,532 | |||||||||||||||||||||
Total VIE finance receivables, net of allowances | 128,737 | 117,963 | |||||||||||||||||||||
Not encumbered | 21,616 | 15,542 | |||||||||||||||||||||
Total VIE and other finance receivables, net of allowances | $ | 150,353 | $ | 133,505 | |||||||||||||||||||
(1) See Note 7 | |||||||||||||||||||||||
(2) See Note 8 | |||||||||||||||||||||||
Schedule of activity in allowance for losses for VIE and other finance receivables | ' | ||||||||||||||||||||||
Structured | Lottery | Pre-settlement | Life insurance | Attorney cost | Total | ||||||||||||||||||
settlements and | funding | premium financing | financing | ||||||||||||||||||||
annuities | transactions | ||||||||||||||||||||||
Three-months ended September 30, 2012: | |||||||||||||||||||||||
Allowance for losses: | |||||||||||||||||||||||
Balance at beginning of period | $ | (381 | ) | $ | (1 | ) | $ | (1,644 | ) | $ | — | $ | (482 | ) | $ | (2,508 | ) | ||||||
Provision for loss | — | 55 | (504 | ) | 2 | 106 | (341 | ) | |||||||||||||||
Charge-offs | 49 | 18 | 65 | — | 19 | 151 | |||||||||||||||||
Recoveries | — | (72 | ) | (479 | ) | (2 | ) | — | (553 | ) | |||||||||||||
Balance at end of period | $ | (332 | ) | $ | — | $ | (2,562 | ) | $ | — | $ | (357 | ) | $ | (3,251 | ) | |||||||
Three-months ended September 30, 2013: | |||||||||||||||||||||||
Allowance for losses: | |||||||||||||||||||||||
Balance at beginning of period | $ | (182 | ) | $ | — | $ | (6,282 | ) | $ | — | $ | (293 | ) | $ | (6,757 | ) | |||||||
Provision for loss | 51 | 85 | (1,836 | ) | — | 10 | (1,690 | ) | |||||||||||||||
Charge-offs | 85 | — | 1,064 | — | — | 1,149 | |||||||||||||||||
Recoveries | — | (85 | ) | — | — | — | (85 | ) | |||||||||||||||
Balance at end of period | $ | (46 | ) | $ | — | $ | (7,054 | ) | $ | — | $ | (283 | ) | $ | (7,383 | ) | |||||||
Nine-months ended September 30, 2012: | |||||||||||||||||||||||
Allowance for losses: | |||||||||||||||||||||||
Balance at beginning of period | $ | (345 | ) | $ | (1 | ) | $ | (670 | ) | $ | — | $ | (5 | ) | $ | (1,021 | ) | ||||||
Provision for loss | (26 | ) | (48 | ) | (1,522 | ) | 75 | (366 | ) | (1,887 | ) | ||||||||||||
Charge-offs | 75 | 139 | 109 | — | 14 | 337 | |||||||||||||||||
Recoveries | (36 | ) | (90 | ) | (479 | ) | (75 | ) | — | (680 | ) | ||||||||||||
Other | — | — | — | — | — | — | |||||||||||||||||
Balance at end of period | $ | (332 | ) | $ | — | $ | (2,562 | ) | $ | — | $ | (357 | ) | $ | (3,251 | ) | |||||||
Individually evaluated for impairment | $ | (332 | ) | $ | — | $ | (313 | ) | $ | — | $ | — | $ | (645 | ) | ||||||||
Collectively evaluated for impairment | — | — | (2,249 | ) | — | (357 | ) | (2,606 | ) | ||||||||||||||
Balance at end of period | $ | (332 | ) | $ | — | $ | (2,562 | ) | $ | — | $ | (357 | ) | $ | (3,251 | ) | |||||||
VIE and other finance receivables, net: | |||||||||||||||||||||||
Individually evaluated for impairment | $ | 24,987 | $ | 65,764 | $ | 436 | $ | — | $ | — | $ | 91,187 | |||||||||||
Collectively evaluated for impairment | — | — | 53,749 | 4,800 | 3,458 | 62,007 | |||||||||||||||||
Ending Balance | $ | 24,987 | $ | 65,764 | $ | 54,185 | $ | 4,800 | $ | 3,458 | $ | 153,194 | |||||||||||
Nine-months ended September 30, 2013: | |||||||||||||||||||||||
Allowance for losses: | |||||||||||||||||||||||
Balance at beginning of period | $ | (181 | ) | $ | (6 | ) | $ | (4,194 | ) | $ | — | $ | (269 | ) | $ | (4,650 | ) | ||||||
Provision for loss | (88 | ) | 96 | (4,370 | ) | 2 | (14 | ) | (4,374 | ) | |||||||||||||
Charge-offs | 224 | 35 | 1,510 | — | — | 1,769 | |||||||||||||||||
Recoveries | (1 | ) | (125 | ) | — | (2 | ) | — | (128 | ) | |||||||||||||
Balance at end of period | $ | (46 | ) | $ | — | $ | (7,054 | ) | $ | — | $ | (283 | ) | $ | (7,383 | ) | |||||||
Individually evaluated for impairment | $ | (46 | ) | $ | — | $ | (2,095 | ) | $ | — | $ | — | $ | (2,141 | ) | ||||||||
Collectively evaluated for impairment | — | — | (4,959 | ) | — | (283 | ) | (5,242 | ) | ||||||||||||||
Balance at end of period | $ | (46 | ) | $ | — | $ | (7,054 | ) | $ | — | $ | (283 | ) | $ | (7,383 | ) | |||||||
VIE and other finance receivables, net: | |||||||||||||||||||||||
Individually evaluated for impairment | $ | 26,042 | $ | 59,732 | $ | 2,514 | $ | — | $ | — | $ | 88,288 | |||||||||||
Collectively evaluated for impairment | — | — | 43,020 | — | 2,197 | 45,217 | |||||||||||||||||
Ending Balance | $ | 26,042 | $ | 59,732 | $ | 45,534 | $ | — | $ | 2,197 | $ | 133,505 | |||||||||||
Schedule of gross pre-settlement funding transactions based on their year of origination | ' | ||||||||||||||||||||||
Year of | December 31, 2012 | September 30, 2013 | |||||||||||||||||||||
Origination | |||||||||||||||||||||||
2009 | 6,276 | 5,270 | |||||||||||||||||||||
2010 | 9,891 | 6,116 | |||||||||||||||||||||
2011 | 17,770 | 11,978 | |||||||||||||||||||||
2012 | 28,838 | 19,522 | |||||||||||||||||||||
2013 | — | 12,574 | |||||||||||||||||||||
$ | 62,775 | $ | 55,460 | ||||||||||||||||||||
Schedule of portfolio delinquency status | ' | ||||||||||||||||||||||
VIE and Other | |||||||||||||||||||||||
30-59 | 60-89 | Greater | VIE and Other | Finance | |||||||||||||||||||
Finance | Receivables, net | ||||||||||||||||||||||
Days | Days | than | Total | Receivables, | > 90 days | ||||||||||||||||||
Past Due | Past Due | 90 Days | Past Due | Current | net | accruing | |||||||||||||||||
December 31, 2012: | |||||||||||||||||||||||
Structured settlements and annuities | $ | 8 | $ | — | $ | 54 | $ | 62 | $ | 26,012 | $ | 26,074 | $ | — | |||||||||
Lottery winnings | — | — | — | — | 63,430 | 63,430 | — | ||||||||||||||||
Life insurance premium financing | — | — | — | — | 3,764 | 3,764 | — | ||||||||||||||||
Total | $ | 8 | $ | — | $ | 54 | $ | 62 | $ | 93,206 | $ | 93,268 | $ | — | |||||||||
September 30, 2013: | |||||||||||||||||||||||
Structured settlements and annuities | $ | — | $ | — | $ | 172 | $ | 172 | $ | 25,870 | $ | 26,042 | $ | — | |||||||||
Lottery winnings | — | — | — | — | 59,732 | 59,732 | — | ||||||||||||||||
Life insurance premium financing | — | — | — | — | — | — | — | ||||||||||||||||
Total | $ | — | $ | — | $ | 172 | $ | 172 | $ | 85,602 | $ | 85,774 | $ | — |
VIE_Borrowings_Under_Revolving1
VIE Borrowings Under Revolving Credit Facilities and Other Similar Borrowings (Tables) (Predecessor) | 9 Months Ended | |||||||||
Sep. 30, 2013 | ||||||||||
Predecessor | ' | |||||||||
Schedule of VIE borrowings under revolving credit facilities and other similar borrowings | ' | |||||||||
December 31, | September 30, | |||||||||
Entity | 2012 | 2013 | ||||||||
$100 million variable funding note facility with interest payable monthly at 9.0%, collateralized by JGW-S III’s structured settlements receivables, 2-year revolving period with 18 months amortization period thereafter upon notice by the issuer or the note holder with all principal and interest outstanding payable no later than October 15, 2048. JGW-S III is charged monthly an unused fee of 1.00% per annum for the undrawn balance of its line of credit. | JGW-S III | $ | 183 | $ | 12,050 | |||||
$200 million credit facility, interest payable monthly at the rate greater of 5.00% or the sum of LIBOR plus applicable margin (5.0% at December 31, 2012 and September 30, 2013), maturing on February 17, 2016 , collateralized by JGW IV’s structured settlements and annuity receivables. JGW IV, LLC is charged monthly an unused fee of 0.50% per annum for the undrawn balance of its line of credit. | JGW IV | 4,171 | 10,231 | |||||||
$300 million multi-tranche and lender credit facility, interest payable monthly. The Facility was revised on July 24, 2013 as follows: Tranche A rate comprises 3.0% and either the LIBOR or the Commercial Paper rate depending on the lender (3.18% and 3.29% at September 30, 2013). Tranche B rate is 5.5% plus LIBOR (5.68% at September 30, 2013). The facility matures on July 24, 2016 and is collateralized by JGW V’s structured settlements and annuity receivables. JGW V, LLC is charged monthly an unused fee of 0.625% per annum for the undrawn balance of its line of credit. (1) | JGW V | 5,530 | 11,763 | |||||||
$40 million credit facility with interest payable monthly at the lender’s “prime rate” plus 1.00%, subject to a floor of 4.50% (4.5% at December 31, 2012 and September 30, 2013), maturing December 31, 2013. The line of credit is collateralized by certain pre-settlement receivables. Peach One is charged monthly an unused fee of 0.50% per annum for the undrawn balance of its line of credit. | Peach One | 17,527 | 15,124 | |||||||
Life settlements financing facility, interest payable quarterly at three-month Euribor plus 7.30% (7.49% at December 31, 2012). The facility was collateralized by assigned life settlement contracts from Immram and matured on August 23, 2013. | Skolvus 1 GMbh & Co. KG | (31 | ) | — | ||||||
$ | 27,380 | $ | 49,168 | |||||||
(1) The previous agreement provided for a $275 million facility, a Tranche A rate comprised of 3.50% and either the LIBOR or the Commercial Paper rate depending on the lender (3.71% or 3.90% at December 31, 2012), a Tranche B rate of 6.0% plus LIBOR (6.21% at December 31, 2012), and a monthly unused fee of 0.75% per annum for the undrawn balance of the line of credit. |
VIE_LongTerm_Debt_Tables
VIE Long-Term Debt (Tables) (Predecessor) | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Predecessor | ' | |||||||
Schedule of VIE long-term debt | ' | |||||||
December 31, 2012 | September 30, 2013 | |||||||
PLMT Permanent Facility | $ | 50,008 | $ | 48,241 | ||||
Residual Term Facility | 70,000 | 69,560 | ||||||
Long-Term Presettlement Facility | 20,289 | 13,861 | ||||||
2012-A Facility | 2,463 | 2,319 | ||||||
LCSS Facility (2010-C) | 12,880 | 12,880 | ||||||
LCSS Facility (2010-D) | 7,159 | 7,159 | ||||||
$ | 162,799 | $ | 154,020 |
VIE_Longterm_Debt_Issued_by_Se1
VIE Long-term Debt Issued by Securitization and Permanent Financing trusts, at Fair Market Value (Tables) (Predecessor) | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Predecessor | ' | |||||||||||||
Summary of securitization SPE transactions | ' | |||||||||||||
2012-1 | ||||||||||||||
(bond proceeds in $ millions) | ||||||||||||||
Issue date | 3/16/12 | |||||||||||||
Bond proceeds | $232.40 | |||||||||||||
Receivables securitized | 4,476 | |||||||||||||
Deal discount rate | 4.62% | |||||||||||||
Retained interest % | 6.75% | |||||||||||||
Class allocation (Moody’s) | ||||||||||||||
Aaa | 85.00% | |||||||||||||
Baa2 | 8.25% | |||||||||||||
2012-2 | ||||||||||||||
(bond proceeds in $ millions) | ||||||||||||||
Issue date | 7/25/12 | |||||||||||||
Bond proceeds | $158.00 | |||||||||||||
Receivables securitized | 3,016 | |||||||||||||
Deal discount rate | 4.27% | |||||||||||||
Retained interest % | 6.75% | |||||||||||||
Class allocation (Moody’s) | ||||||||||||||
Aaa | 85.00% | |||||||||||||
Baa2 | 8.25% | |||||||||||||
2013-1 | ||||||||||||||
(bond proceeds in $ millions) | ||||||||||||||
Issue date | 3/20/13 | |||||||||||||
Bond proceeds | $216.50 | |||||||||||||
Receivables securitized | 2,425 | |||||||||||||
Deal discount rate | 3.65% | |||||||||||||
Retained interest % | 6.75% | |||||||||||||
Class allocation (Moody’s) | ||||||||||||||
Aaa | 85.25% | |||||||||||||
Baa2 | 8.00% | |||||||||||||
2013-2 | ||||||||||||||
(bond proceeds in $ millions) | ||||||||||||||
Issue date | 7/30/13 | |||||||||||||
Bond proceeds | $174.60 | |||||||||||||
Receivables securitized | 3,410 | |||||||||||||
Deal discount rate | 4.49% | |||||||||||||
Retained interest % | 6.75% | |||||||||||||
Class allocation (Moody’s) | ||||||||||||||
Aaa | 85.25% | |||||||||||||
Baa2 | 8.00% | |||||||||||||
Summary of notes issued by securitization and permanent financing trusts | ' | |||||||||||||
Outstanding Principal at | Outstanding | Fair Value at | Fair Value at | |||||||||||
Principal at | ||||||||||||||
December 31, 2012 | September 30, 2013 | December 31, 2012 | September 30, 2013 | |||||||||||
Securitization trusts | $ | 2,693,597 | $ | 2,913,160 | $ | 2,892,466 | $ | 3,095,261 | ||||||
Permanent financing VIEs | 319,382 | 320,609 | 337,125 | 342,600 | ||||||||||
Total | $ | 3,012,979 | $ | 3,233,769 | $ | 3,229,591 | $ | 3,437,861 |
Derivative_Financial_Instrumen1
Derivative Financial Instruments (Tables) (Predecessor) | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Predecessor | ' | |||||||||||||||
Schedule of notional amounts and fair values of the Company's interest rate swaps | ' | |||||||||||||||
Notional | Fair Market Value | Notional | Fair Market Value | |||||||||||||
Entity | Securitization | at December 31, 2012 | December 31, 2012 | at September 30, 2013 | September 30, 2013 | |||||||||||
321 Henderson I | 2004-A A-1 | $ | 50,858 | $ | (6,492 | ) | $ | 42,905 | $ | (4,313 | ) | |||||
321 Henderson I | 2005-1 A-1 | 86,766 | (14,362 | ) | 76,839 | (9,785 | ) | |||||||||
321 Henderson II | 2006-1 A-1 | 26,307 | (3,581 | ) | 22,107 | (2,442 | ) | |||||||||
321 Henderson II | 2006-2 A-1 | 27,560 | (5,181 | ) | 24,552 | (3,625 | ) | |||||||||
321 Henderson II | 2006-3 A-1 | 30,493 | (5,001 | ) | 27,058 | (3,471 | ) | |||||||||
321 Henderson II | 2006-4 A-1 | 27,402 | (4,271 | ) | 24,701 | (3,009 | ) | |||||||||
321 Henderson II | 2007-1 A-1 | 42,670 | (9,031 | ) | 39,613 | (6,093 | ) | |||||||||
321 Henderson II | 2007-2 A-1 | 46,087 | (13,072 | ) | 42,598 | (9,174 | ) | |||||||||
JGW V, LLC | — | — | — | 11,886 | (181 | ) | ||||||||||
PSS | — | 205,180 | (46,407 | ) | 196,094 | (29,195 | ) | |||||||||
PLMT | — | 61,701 | (14,100 | ) | 58,303 | (9,837 | ) | |||||||||
Total | $ | 605,024 | $ | (121,498 | ) | $ | 566,656 | $ | (81,125 | ) |
Restructure_Expense_Tables
Restructure Expense (Tables) (Predecessor) | 9 Months Ended | ||||
Sep. 30, 2013 | |||||
Predecessor | ' | ||||
Schedule of reconciliation of the associated restructure liability | ' | ||||
Total | |||||
Balance at December 31, 2012 | $ | — | |||
Restructure expense | 3,224 | ||||
Payments for restructure charges | (2,456 | ) | |||
Balance at September 30, 2013 | $ | 768 |
Background_and_Basis_of_Presen1
Background and Basis of Presentation (Details) (Merger Sub) | 1 Months Ended |
Jul. 31, 2011 | |
Merger Sub | ' |
Background and basis of presentation | ' |
Number of common interests into which each outstanding equity interest of aquiree was converted | 1 |
Recently_Issued_Accounting_Sta2
Recently Issued Accounting Statements (Details) (Predecessor, USD $) | 9 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 | ||
Accumulated other comprehensive income components | ' | ' | ||
Realized loss on notes receivable, at fair market value | $1,862 | ' | ||
Notes receivable, at fair market value expected to mature in 2018 | 6,238 | [1] | 8,074 | [1] |
Unrealized gains and losses on available-for-sale securities | Amount reclassified from accumulated other comprehensive income | ' | ' | ||
Accumulated other comprehensive income components | ' | ' | ||
Realized loss on notes receivable, at fair market value | $1,862 | ' | ||
[1] | Pledged as collateral to credit and long-term debt facilities |
Variable_Interest_Entities_Det
Variable Interest Entities (Details) (Predecessor) | 9 Months Ended |
Sep. 30, 2013 | |
Predecessor | ' |
Variable Interest Entities | ' |
Minimum expected life of consolidated VIEs | '20 years |
Fair_Value_Measurements_Detail
Fair Value Measurements (Details) (Predecessor, USD $) | 9 Months Ended | 12 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 | ||
Fair value and amortized costs of notes receivable | ' | ' | ||
Amortized cost | 6,175 | 8,297 | ||
Fair market value | 6,238 | [1] | 8,074 | [1] |
Marketable securities: | ' | ' | ||
Total marketable securities | 132,613 | 131,114 | ||
VIE and other finance receivables, at fair market value | 3,888,893 | 3,615,188 | ||
Notes receivable, at fair market value | 6,238 | [1] | 8,074 | [1] |
Maximum recovery period of other receivables | '3 months | ' | ||
Liabilities | ' | ' | ||
VIE long-term debt issued by securitization and permanent financing trusts, at fair market value | 3,437,861 | 3,229,591 | ||
VIE derivative liabilities, at fair market value | 81,125 | 121,498 | ||
VIE and other finance receivables | ' | ' | ||
Assets and liabilities that are carried at fair value | ' | ' | ||
Discount rate for discounting residual cash flows (as a percent) | 7.71% | 9.34% | ||
Weighted average life | '20 years | ' | ||
Loss assumption (as a percent) | 0.25% | ' | ||
Quoted Prices in Active Markets for Identical Assets Level 1 | ' | ' | ||
Marketable securities: | ' | ' | ||
Total equity securities | 87,425 | 81,582 | ||
Total fixed income securities | 38,596 | 42,021 | ||
Total other securities | 6,592 | 7,511 | ||
Total marketable securities | 132,613 | 131,114 | ||
Total Assets | 132,613 | 131,114 | ||
Quoted Prices in Active Markets for Identical Assets Level 1 | US large cap | ' | ' | ||
Marketable securities: | ' | ' | ||
Total equity securities | 44,765 | 40,446 | ||
Quoted Prices in Active Markets for Identical Assets Level 1 | US mid cap | ' | ' | ||
Marketable securities: | ' | ' | ||
Total equity securities | 9,125 | 8,472 | ||
Quoted Prices in Active Markets for Identical Assets Level 1 | US small cap | ' | ' | ||
Marketable securities: | ' | ' | ||
Total equity securities | 10,481 | 9,224 | ||
Quoted Prices in Active Markets for Identical Assets Level 1 | International | ' | ' | ||
Marketable securities: | ' | ' | ||
Total equity securities | 22,233 | 22,651 | ||
Quoted Prices in Active Markets for Identical Assets Level 1 | Other equity | ' | ' | ||
Marketable securities: | ' | ' | ||
Total equity securities | 821 | 789 | ||
Quoted Prices in Active Markets for Identical Assets Level 1 | US fixed income | ' | ' | ||
Marketable securities: | ' | ' | ||
Total fixed income securities | 33,263 | 36,047 | ||
Quoted Prices in Active Markets for Identical Assets Level 1 | International fixed income | ' | ' | ||
Marketable securities: | ' | ' | ||
Total fixed income securities | 5,303 | 5,963 | ||
Quoted Prices in Active Markets for Identical Assets Level 1 | Other fixed income | ' | ' | ||
Marketable securities: | ' | ' | ||
Total fixed income securities | 30 | 11 | ||
Quoted Prices in Active Markets for Identical Assets Level 1 | Cash & cash equivalents | ' | ' | ||
Marketable securities: | ' | ' | ||
Total other securities | 3,754 | 4,789 | ||
Quoted Prices in Active Markets for Identical Assets Level 1 | Alternative investments | ' | ' | ||
Marketable securities: | ' | ' | ||
Total other securities | 645 | 483 | ||
Quoted Prices in Active Markets for Identical Assets Level 1 | Annuities | ' | ' | ||
Marketable securities: | ' | ' | ||
Total other securities | 2,193 | 2,239 | ||
Significant Other Observable Inputs Level II | ' | ' | ||
Liabilities | ' | ' | ||
VIE derivative liabilities, at fair market value | 81,125 | 121,498 | ||
Total Liabilities | 81,125 | 121,498 | ||
Significant Unobservable Inputs Level III | ' | ' | ||
Fair value and amortized costs of notes receivable | ' | ' | ||
Fair market value | 6,238 | 8,074 | ||
Marketable securities: | ' | ' | ||
VIE and other finance receivables, at fair market value | 3,888,893 | 3,615,188 | ||
Notes receivable, at fair market value | 6,238 | 8,074 | ||
Life settlement contracts, at fair market value | ' | 1,724 | ||
Total Assets | 3,895,131 | 3,624,986 | ||
Liabilities | ' | ' | ||
VIE long-term debt issued by securitization and permanent financing trusts, at fair market value | 3,437,861 | 3,229,591 | ||
Total Liabilities | 3,437,861 | 3,229,591 | ||
Significant Unobservable Inputs Level III | VIE long-term debt issued by securitization and permanent financing trusts, at fair market value | ' | ' | ||
Liabilities | ' | ' | ||
Total Liabilities | 3,437,861 | 3,229,591 | ||
Significant Unobservable Inputs Level III | VIE and other finance receivables | ' | ' | ||
Marketable securities: | ' | ' | ||
Total Assets | 3,888,893 | 3,615,188 | ||
Total at Fair Value | ' | ' | ||
Fair value and amortized costs of notes receivable | ' | ' | ||
Fair market value | 6,238 | 8,074 | ||
Marketable securities: | ' | ' | ||
Total equity securities | 87,425 | 81,582 | ||
Total fixed income securities | 38,596 | 42,021 | ||
Total other securities | 6,592 | 7,511 | ||
Total marketable securities | 132,613 | 131,114 | ||
VIE and other finance receivables, at fair market value | 3,888,893 | 3,615,188 | ||
Notes receivable, at fair market value | 6,238 | 8,074 | ||
Life settlement contracts, at fair market value | ' | 1,724 | ||
Total Assets | 4,027,744 | 3,756,100 | ||
Liabilities | ' | ' | ||
VIE long-term debt issued by securitization and permanent financing trusts, at fair market value | 3,437,861 | 3,229,591 | ||
VIE derivative liabilities, at fair market value | 81,125 | 121,498 | ||
Total Liabilities | 3,518,986 | 3,351,089 | ||
Total at Fair Value | US large cap | ' | ' | ||
Marketable securities: | ' | ' | ||
Total equity securities | 44,765 | 40,446 | ||
Total at Fair Value | US mid cap | ' | ' | ||
Marketable securities: | ' | ' | ||
Total equity securities | 9,125 | 8,472 | ||
Total at Fair Value | US small cap | ' | ' | ||
Marketable securities: | ' | ' | ||
Total equity securities | 10,481 | 9,224 | ||
Total at Fair Value | International | ' | ' | ||
Marketable securities: | ' | ' | ||
Total equity securities | 22,233 | 22,651 | ||
Total at Fair Value | Other equity | ' | ' | ||
Marketable securities: | ' | ' | ||
Total equity securities | 821 | 789 | ||
Total at Fair Value | US fixed income | ' | ' | ||
Marketable securities: | ' | ' | ||
Total fixed income securities | 33,263 | 36,047 | ||
Total at Fair Value | International fixed income | ' | ' | ||
Marketable securities: | ' | ' | ||
Total fixed income securities | 5,303 | 5,963 | ||
Total at Fair Value | Other fixed income | ' | ' | ||
Marketable securities: | ' | ' | ||
Total fixed income securities | 30 | 11 | ||
Total at Fair Value | Cash & cash equivalents | ' | ' | ||
Marketable securities: | ' | ' | ||
Total other securities | 3,754 | 4,789 | ||
Total at Fair Value | Alternative investments | ' | ' | ||
Marketable securities: | ' | ' | ||
Total other securities | 645 | 483 | ||
Total at Fair Value | Annuities | ' | ' | ||
Marketable securities: | ' | ' | ||
Total other securities | 2,193 | 2,239 | ||
[1] | Pledged as collateral to credit and long-term debt facilities |
Fair_Value_Measurements_Detail1
Fair Value Measurements (Details 2) (Predecessor, Level 3, USD $) | 9 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 |
Quantitative information about fair value measurements | ' | ' |
Fair Value of Assets | 3,895,131 | 3,624,986 |
Fair Value of Liabilities | 3,437,861 | 3,229,591 |
VIE long-term debt issued by securitization and permanent financing trusts, at fair market value | ' | ' |
Quantitative information about fair value measurements | ' | ' |
Fair Value of Liabilities | 3,437,861 | 3,229,591 |
VIE long-term debt issued by securitization and permanent financing trusts, at fair market value | Discounted cash flow | Minimum | ' | ' |
Unobservable Input | ' | ' |
Discount rate (as a percent) | 0.74% | 0.53% |
VIE long-term debt issued by securitization and permanent financing trusts, at fair market value | Discounted cash flow | Maximum | ' | ' |
Unobservable Input | ' | ' |
Discount rate (as a percent) | 12.67% | 12.38% |
VIE long-term debt issued by securitization and permanent financing trusts, at fair market value | Discounted cash flow | Weighted Avg | ' | ' |
Unobservable Input | ' | ' |
Discount rate (as a percent) | 3.60% | 3.43% |
VIE and other finance receivables, at fair market value | ' | ' |
Quantitative information about fair value measurements | ' | ' |
Fair Value of Assets | 3,888,893 | 3,615,188 |
VIE and other finance receivables, at fair market value | Discounted cash flow | Minimum | ' | ' |
Unobservable Input | ' | ' |
Discount rate (as a percent) | 2.59% | 2.68% |
VIE and other finance receivables, at fair market value | Discounted cash flow | Maximum | ' | ' |
Unobservable Input | ' | ' |
Discount rate (as a percent) | 12.98% | 12.52% |
VIE and other finance receivables, at fair market value | Discounted cash flow | Weighted Avg | ' | ' |
Unobservable Input | ' | ' |
Discount rate (as a percent) | 3.99% | 3.99% |
Notes receivable, at fair market value | ' | ' |
Quantitative information about fair value measurements | ' | ' |
Fair Value of Assets | 6,238 | 8,074 |
Notes receivable, at fair market value | Discounted cash flow | ' | ' |
Unobservable Input | ' | ' |
Discount rate (as a percent) | 7.71% | 9.78% |
Notes receivable, at fair market value | Discounted cash flow | Weighted Avg | ' | ' |
Unobservable Input | ' | ' |
Discount rate (as a percent) | 7.71% | 9.78% |
Life settlement contracts, at fair market value | ' | ' |
Quantitative information about fair value measurements | ' | ' |
Fair Value of Assets | ' | 1,724 |
Life settlement contracts, at fair market value | Discounted cash flow | ' | ' |
Unobservable Input | ' | ' |
Discount rate (as a percent) | 18.50% | 18.50% |
Life settlement contracts, at fair market value | Discounted cash flow | Weighted Avg | ' | ' |
Unobservable Input | ' | ' |
Discount rate (as a percent) | 18.50% | 18.50% |
Life settlement contracts, at fair market value | Model actuarial pricing | Minimum | ' | ' |
Unobservable Input | ' | ' |
Life expectancy | '7 months | '16 months |
Life settlement contracts, at fair market value | Model actuarial pricing | Maximum | ' | ' |
Unobservable Input | ' | ' |
Life expectancy | '251 months | '260 months |
Life settlement contracts, at fair market value | Model actuarial pricing | Weighted Avg | ' | ' |
Unobservable Input | ' | ' |
Life expectancy | '140 months | '147 months |
Fair_Value_Measurements_Detail2
Fair Value Measurements (Details 3) (Predecessor, USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Changes in assets | ' | ' |
Balance at the beginning of the period | $3,624,986 | $3,060,069 |
Total gains (losses) included in earnings / losses | 197,407 | 346,229 |
Total gains (losses) included in other comprehensive gain | 502 | 279 |
Purchases | 300,452 | 259,005 |
Premiums paid | 241 | 935 |
Sales | ' | -4,364 |
Lapsed policies | 0 | ' |
Interest accreted | 107,784 | 111,798 |
Payments received | -324,683 | -307,174 |
Maturities | -51 | ' |
Asset distribution | -11,507 | ' |
Transfers in and/or out of Level 3 | 0 | ' |
Balance at the end of the period | 3,895,131 | 3,466,777 |
Amount of total gains (losses) for the period included in earnings attributable to the change in unrealized gains or losses relating to assets still held at the end of the period | 197,460 | 346,023 |
VIE and other finance receivables, at fair market value | ' | ' |
Changes in assets | ' | ' |
Balance at the beginning of the period | 3,615,188 | 3,041,090 |
Total gains (losses) included in earnings / losses | 197,429 | 346,746 |
Purchases | 300,452 | 259,005 |
Sales | 0 | -447 |
Lapsed policies | 0 | ' |
Interest accreted | 107,784 | 111,798 |
Payments received | -322,345 | -303,721 |
Asset distribution | -9,615 | ' |
Balance at the end of the period | 3,888,893 | 3,454,471 |
Amount of total gains (losses) for the period included in earnings attributable to the change in unrealized gains or losses relating to assets still held at the end of the period | 197,429 | 346,155 |
Life settlement contracts, at fair market value | ' | ' |
Changes in assets | ' | ' |
Balance at the beginning of the period | 1,724 | 6,214 |
Total gains (losses) included in earnings / losses | -22 | -517 |
Premiums paid | 241 | 935 |
Sales | 0 | -3,917 |
Lapsed policies | 0 | ' |
Maturities | -51 | ' |
Asset distribution | -1,892 | ' |
Balance at the end of the period | ' | 2,715 |
Amount of total gains (losses) for the period included in earnings attributable to the change in unrealized gains or losses relating to assets still held at the end of the period | 31 | -132 |
Notes receivable, at fair market value | ' | ' |
Changes in assets | ' | ' |
Balance at the beginning of the period | 8,074 | 12,765 |
Total gains (losses) included in other comprehensive gain | 502 | 279 |
Lapsed policies | 0 | ' |
Payments received | -2,338 | -3,453 |
Balance at the end of the period | $6,238 | $9,591 |
Fair_Value_Measurements_Detail3
Fair Value Measurements (Details 4) (Predecessor, VIE long-term debt issued by securitization and permanent financing trusts, at fair market value, USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Predecessor | VIE long-term debt issued by securitization and permanent financing trusts, at fair market value | ' | ' |
Changes in liabilities | ' | ' |
Balance at the beginning of the period | $3,229,591 | $2,663,873 |
Total (gains) losses included in earnings / losses | 23,769 | 157,998 |
Issuances | 406,240 | 400,881 |
Interest accreted | -35,863 | -25,207 |
Repayments | -185,876 | -169,693 |
Transfers in and/or out of Level 3 | 0 | ' |
Balance at the end of the period | 3,437,861 | 3,027,852 |
Amount of total gains (losses) for the period included in earnings attributable to the change in unrealized gains or losses relating to long-term debt still held at the end of the period | $23,769 | $157,998 |
Fair_Value_Measurements_Detail4
Fair Value Measurements (Details 5) (Predecessor, USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
VIE and other finance receivables and long-term debt | ' | ' | ' | ' |
Realized and unrealized gains and losses included in earnings | ' | ' | ' | ' |
Gains (losses) included in earnings | $46,020 | $57,142 | $173,660 | $188,748 |
Change in unrealized gains (losses) relating to assets still held at the reporting date | 46,020 | 57,142 | 173,660 | 188,157 |
Life settlement contracts income | ' | ' | ' | ' |
Realized and unrealized gains and losses included in earnings | ' | ' | ' | ' |
Gains (losses) included in earnings | 51 | 183 | -22 | -517 |
Change in unrealized gains (losses) relating to assets still held at the reporting date | $51 | $183 | $31 | ($132) |
Fair_Value_Measurements_Detail5
Fair Value Measurements (Details 6) (Predecessor, USD $) | Sep. 30, 2013 | Dec. 31, 2012 | ||
In Thousands, unless otherwise specified | ||||
Financial assets | ' | ' | ||
Marketable securities | $132,613 | $131,114 | ||
VIE and other finance receivables, at fair market value | 3,888,893 | 3,615,188 | ||
Notes receivable, at fair market value | 6,238 | [1] | 8,074 | [1] |
Note receivable due from affiliate | ' | 5,243 | ||
Other receivables, net of allowance for losses | 14,269 | 13,146 | ||
Financial liabilities | ' | ' | ||
VIE derivative liabilities, at fair market value | 81,125 | 121,498 | ||
VIE borrowings under revolving credit facilities and other similar borrowings | 49,168 | 27,380 | ||
VIE long-term debt | 154,020 | 162,799 | ||
VIE long-term debt issued by securitization and permanent financing trusts, at fair market value | 3,437,861 | 3,229,591 | ||
Installment Obligations Payable | 132,613 | 131,114 | ||
Level 3 | ' | ' | ||
Financial assets | ' | ' | ||
VIE and other finance receivables, at fair market value | 3,888,893 | 3,615,188 | ||
Life settlement contracts, at fair market value | ' | 1,724 | ||
Notes receivable, at fair market value | 6,238 | 8,074 | ||
Financial liabilities | ' | ' | ||
VIE long-term debt issued by securitization and permanent financing trusts, at fair market value | 3,437,861 | 3,229,591 | ||
Estimated Fair Value | ' | ' | ||
Financial assets | ' | ' | ||
Marketable securities | 132,613 | 131,114 | ||
VIE and other finance receivables, at fair market value | 3,888,893 | 3,615,188 | ||
Life settlement contracts, at fair market value | ' | 1,724 | ||
Notes receivable, at fair market value | 6,238 | 8,074 | ||
Financial liabilities | ' | ' | ||
VIE derivative liabilities, at fair market value | 81,125 | 121,498 | ||
VIE long-term debt issued by securitization and permanent financing trusts, at fair market value | 3,437,861 | 3,229,591 | ||
Estimated Fair Value | Level 3 | ' | ' | ||
Financial assets | ' | ' | ||
VIE and other finance receivables, net of allowance for losses | 127,413 | 145,155 | ||
Note receivable due from affiliate | 0 | 5,243 | ||
Other receivables, net of allowance for losses | 14,269 | 13,146 | ||
Financial liabilities | ' | ' | ||
VIE borrowings under revolving credit facilities and other similar borrowings | 50,655 | 28,198 | ||
VIE long-term debt | 149,954 | 158,801 | ||
Installment Obligations Payable | 132,613 | 131,114 | ||
Term loan payable | 556,422 | 142,441 | ||
Carrying Amount | ' | ' | ||
Financial assets | ' | ' | ||
Marketable securities | 132,613 | 131,114 | ||
VIE and other finance receivables, at fair market value | 3,888,893 | 3,615,188 | ||
Life settlement contracts, at fair market value | ' | 1,724 | ||
Notes receivable, at fair market value | 6,238 | 8,074 | ||
Financial liabilities | ' | ' | ||
VIE derivative liabilities, at fair market value | 81,125 | 121,498 | ||
VIE long-term debt issued by securitization and permanent financing trusts, at fair market value | 3,437,861 | 3,229,591 | ||
Carrying Amount | Level 3 | ' | ' | ||
Financial assets | ' | ' | ||
VIE and other finance receivables, net of allowance for losses | 133,505 | 150,353 | ||
Note receivable due from affiliate | 0 | 5,243 | ||
Other receivables, net of allowance for losses | 14,269 | 13,146 | ||
Financial liabilities | ' | ' | ||
VIE borrowings under revolving credit facilities and other similar borrowings | 49,168 | 27,380 | ||
VIE long-term debt | 154,020 | 162,799 | ||
Installment Obligations Payable | 132,613 | 131,114 | ||
Term loan payable | $556,422 | $142,441 | ||
[1] | Pledged as collateral to credit and long-term debt facilities |
VIE_and_Other_Finance_Receivab4
VIE and Other Finance Receivables, at Fair Market Value (Details) (Predecessor, USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | |||
VIE and other finance receivables, at fair market value | ' | ' | ' | ' | ' | |||
Maturity value | $5,784,472 | ' | $5,784,472 | ' | $5,335,328 | |||
Unearned income | -1,895,579 | ' | -1,895,579 | ' | -1,720,140 | |||
Total VIE finance receivables at fair value | 3,861,612 | [1] | ' | 3,861,612 | [1] | ' | 3,586,465 | [1] |
Not encumbered | 27,281 | ' | 27,281 | ' | 28,723 | |||
Total VIE and other finance receivables at fair value | 3,888,893 | ' | 3,888,893 | ' | 3,615,188 | |||
Servicing fees | 239 | 258 | 714 | 803 | ' | |||
Variable funding note facility | ' | ' | ' | ' | ' | |||
VIE and other finance receivables, at fair market value | ' | ' | ' | ' | ' | |||
Total VIE finance receivables at fair value | 19,014 | ' | 19,014 | ' | 230 | |||
Maximum borrowing capacity | 100,000 | ' | 100,000 | ' | 100,000 | |||
Multi-tranche and lender credit facility | ' | ' | ' | ' | ' | |||
VIE and other finance receivables, at fair market value | ' | ' | ' | ' | ' | |||
Total VIE finance receivables at fair value | 19,480 | ' | 19,480 | ' | 8,277 | |||
Maximum borrowing capacity | 300,000 | ' | 300,000 | ' | 300,000 | |||
Permanent financing related to 2011-A | ' | ' | ' | ' | ' | |||
VIE and other finance receivables, at fair market value | ' | ' | ' | ' | ' | |||
Total VIE finance receivables at fair value | 36,005 | ' | 36,005 | ' | 20,505 | |||
Amount of debt | 50,000 | ' | 50,000 | ' | 50,000 | |||
VIE securitization debt | ' | ' | ' | ' | ' | |||
VIE and other finance receivables, at fair market value | ' | ' | ' | ' | ' | |||
Total VIE finance receivables at fair value | 3,773,189 | ' | 3,773,189 | ' | 3,550,394 | |||
JGW IV | Credit facility | ' | ' | ' | ' | ' | |||
VIE and other finance receivables, at fair market value | ' | ' | ' | ' | ' | |||
Total VIE and other finance receivables at fair value | 13,924 | ' | 13,924 | ' | 7,059 | |||
Maximum borrowing capacity | $200,000 | ' | $200,000 | ' | $200,000 | |||
[1] | Pledged as collateral to credit and long-term debt facilities |
VIE_and_Other_Finance_Receivab5
VIE and Other Finance Receivables, net of Allowance for Losses (Details) (Predecessor, VIE and Other Finance Receivables, net, USD $) | Sep. 30, 2013 | Jun. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | ||||||
VIE and other finance receivables, net of allowance for losses | ' | ' | ' | ' | ' | ' |
Finance receivables, gross | $140,888 | ' | $155,003 | ' | ' | ' |
Less: allowance for losses | -7,383 | -6,757 | -4,650 | -3,251 | -2,508 | -1,021 |
Finance receivables, net | 133,505 | ' | 150,353 | 153,194 | ' | ' |
Structured settlements and annuities | ' | ' | ' | ' | ' | ' |
VIE and other finance receivables, net of allowance for losses | ' | ' | ' | ' | ' | ' |
Finance receivable before unearned income or deferred revenue | 76,640 | ' | 79,653 | ' | ' | ' |
Less: unearned income or deferred revenue | -50,552 | ' | -53,398 | ' | ' | ' |
Finance receivables, gross | 26,088 | ' | 26,255 | ' | ' | ' |
Less: allowance for losses | -46 | -182 | -181 | -332 | -381 | -345 |
Finance receivables, net | 26,042 | ' | ' | 24,987 | ' | ' |
Lottery winnings | ' | ' | ' | ' | ' | ' |
VIE and other finance receivables, net of allowance for losses | ' | ' | ' | ' | ' | ' |
Finance receivable before unearned income or deferred revenue | 89,232 | ' | 97,204 | ' | ' | ' |
Less: unearned income or deferred revenue | -29,500 | ' | -33,768 | ' | ' | ' |
Finance receivables, gross | 59,732 | ' | 63,436 | ' | ' | ' |
Less: allowance for losses | ' | ' | -6 | ' | -1 | -1 |
Finance receivables, net | 59,732 | ' | ' | 65,764 | ' | ' |
Pre-settlement funding transactions | ' | ' | ' | ' | ' | ' |
VIE and other finance receivables, net of allowance for losses | ' | ' | ' | ' | ' | ' |
Finance receivable before unearned income or deferred revenue | 55,460 | ' | 62,775 | ' | ' | ' |
Less: unearned income or deferred revenue | -2,872 | ' | -4,296 | ' | ' | ' |
Finance receivables, gross | 52,588 | ' | 58,479 | ' | ' | ' |
Less: allowance for losses | -7,054 | -6,282 | -4,194 | -2,562 | -1,644 | -670 |
Life insurance premium financing | ' | ' | ' | ' | ' | ' |
VIE and other finance receivables, net of allowance for losses | ' | ' | ' | ' | ' | ' |
Finance receivable before unearned income or deferred revenue | ' | ' | 3,807 | ' | ' | ' |
Less: unearned income or deferred revenue | ' | ' | -43 | ' | ' | ' |
Finance receivables, gross | ' | ' | 3,764 | ' | ' | ' |
Finance receivables, net | ' | ' | ' | 4,800 | ' | ' |
Attorney cost financing | ' | ' | ' | ' | ' | ' |
VIE and other finance receivables, net of allowance for losses | ' | ' | ' | ' | ' | ' |
Finance receivable before unearned income or deferred revenue | 2,480 | ' | 3,072 | ' | ' | ' |
Less: unearned income or deferred revenue | ' | ' | -3 | ' | ' | ' |
Finance receivables, gross | 2,480 | ' | 3,069 | ' | ' | ' |
Less: allowance for losses | -283 | -293 | -269 | -357 | -482 | -5 |
Finance receivables, net | $2,197 | ' | ' | $3,458 | ' | ' |
VIE_and_Other_Finance_Receivab6
VIE and Other Finance Receivables, net of Allowance for Losses (Details 2) (Predecessor, USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 |
In Thousands, unless otherwise specified | |||
Long-term presettlement facility | ' | ' | ' |
Encumbrances on financing receivable | ' | ' | ' |
Amount of debt | $45,100 | $45,100 | ' |
Long-term facility | ' | ' | ' |
Encumbrances on financing receivable | ' | ' | ' |
Amount of debt | 2,400 | 2,400 | ' |
VIE and Other Finance Receivables, net | ' | ' | ' |
Encumbrances on financing receivable | ' | ' | ' |
Total VIE finance receivables, net of allowances | 117,963 | 128,737 | ' |
Not encumbered | 15,542 | 21,616 | ' |
Finance receivables, net | 133,505 | 150,353 | 153,194 |
VIE and Other Finance Receivables, net | VIE securitization debt | ' | ' | ' |
Encumbrances on financing receivable | ' | ' | ' |
Total VIE finance receivables, net of allowances | 79,193 | 80,826 | ' |
VIE and Other Finance Receivables, net | Credit facility | ' | ' | ' |
Encumbrances on financing receivable | ' | ' | ' |
Finance receivables, net | 45,534 | ' | 54,185 |
VIE and Other Finance Receivables, net | Long-term presettlement facility | ' | ' | ' |
Encumbrances on financing receivable | ' | ' | ' |
Total VIE finance receivables, net of allowances | 12,775 | 19,389 | ' |
VIE and Other Finance Receivables, net | Long-term facility | ' | ' | ' |
Encumbrances on financing receivable | ' | ' | ' |
Total VIE finance receivables, net of allowances | 2,532 | 2,663 | ' |
Peach One | Credit facility | ' | ' | ' |
Encumbrances on financing receivable | ' | ' | ' |
Maximum borrowing capacity | 40,000 | 40,000 | ' |
Peach One | VIE and Other Finance Receivables, net | Credit facility | ' | ' | ' |
Encumbrances on financing receivable | ' | ' | ' |
Total VIE finance receivables, net of allowances | $23,463 | $25,859 | ' |
VIE_and_Other_Finance_Receivab7
VIE and Other Finance Receivables, net of Allowance for Losses (Details 3) (Predecessor, VIE and Other Finance Receivables, net, USD $) | 3 Months Ended | 9 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 |
Activity in the allowance for losses | ' | ' | ' | ' | ' |
Balance at beginning of period | ($6,757) | ($2,508) | ($4,650) | ($1,021) | ' |
Provision for loss | -1,690 | -341 | -4,374 | -1,887 | ' |
Charge-offs | 1,149 | 151 | 1,769 | 337 | ' |
Recoveries | -85 | -553 | -128 | -680 | ' |
Balance at end of period | -7,383 | -3,251 | -7,383 | -3,251 | ' |
Individually evaluated for impairment | -2,141 | -645 | -2,141 | -645 | ' |
Collectively evaluated for impairment | -5,242 | -2,606 | -5,242 | -2,606 | ' |
Individually evaluated for impairment | 88,288 | 91,187 | 88,288 | 91,187 | ' |
Collectively evaluated for impairment | 45,217 | 62,007 | 45,217 | 62,007 | ' |
Finance receivables, net | 133,505 | 153,194 | 133,505 | 153,194 | 150,353 |
Structured settlements and annuities | ' | ' | ' | ' | ' |
Activity in the allowance for losses | ' | ' | ' | ' | ' |
Balance at beginning of period | -182 | -381 | -181 | -345 | ' |
Provision for loss | 51 | ' | -88 | -26 | ' |
Charge-offs | 85 | 49 | 224 | 75 | ' |
Recoveries | ' | ' | -1 | -36 | ' |
Balance at end of period | -46 | -332 | -46 | -332 | ' |
Individually evaluated for impairment | -46 | -332 | -46 | -332 | ' |
Individually evaluated for impairment | 26,042 | 24,987 | 26,042 | 24,987 | ' |
Finance receivables, net | 26,042 | 24,987 | 26,042 | 24,987 | ' |
Lottery | ' | ' | ' | ' | ' |
Activity in the allowance for losses | ' | ' | ' | ' | ' |
Balance at beginning of period | ' | -1 | -6 | -1 | ' |
Provision for loss | 85 | 55 | 96 | -48 | ' |
Charge-offs | ' | 18 | 35 | 139 | ' |
Recoveries | -85 | -72 | -125 | -90 | ' |
Individually evaluated for impairment | 59,732 | 65,764 | 59,732 | 65,764 | ' |
Finance receivables, net | 59,732 | 65,764 | 59,732 | 65,764 | ' |
Pre-settlement funding transactions | ' | ' | ' | ' | ' |
Activity in the allowance for losses | ' | ' | ' | ' | ' |
Balance at beginning of period | -6,282 | -1,644 | -4,194 | -670 | ' |
Provision for loss | -1,836 | -504 | -4,370 | -1,522 | ' |
Charge-offs | 1,064 | 65 | 1,510 | 109 | ' |
Recoveries | ' | -479 | ' | -479 | ' |
Balance at end of period | -7,054 | -2,562 | -7,054 | -2,562 | ' |
Individually evaluated for impairment | -2,095 | -313 | -2,095 | -313 | ' |
Collectively evaluated for impairment | -4,959 | -2,249 | -4,959 | -2,249 | ' |
Individually evaluated for impairment | 2,514 | 436 | 2,514 | 436 | ' |
Collectively evaluated for impairment | 43,020 | 53,749 | 43,020 | 53,749 | ' |
Impaired financing receivable | 3,453 | ' | 3,453 | ' | 2,521 |
Assessment period to determine whether there are any case specific concerns that need to be addressed and included in the allowance for losses on finance receivables | ' | ' | '120 days | ' | ' |
Life insurance premium financing | ' | ' | ' | ' | ' |
Activity in the allowance for losses | ' | ' | ' | ' | ' |
Provision for loss | ' | 2 | 2 | 75 | ' |
Charge-offs | 0 | ' | ' | ' | ' |
Recoveries | ' | -2 | -2 | -75 | ' |
Collectively evaluated for impairment | ' | 4,800 | ' | 4,800 | ' |
Finance receivables, net | ' | 4,800 | ' | 4,800 | ' |
Attorney cost financing | ' | ' | ' | ' | ' |
Activity in the allowance for losses | ' | ' | ' | ' | ' |
Balance at beginning of period | -293 | -482 | -269 | -5 | ' |
Provision for loss | 10 | 106 | -14 | -366 | ' |
Charge-offs | ' | 19 | ' | 14 | ' |
Balance at end of period | -283 | -357 | -283 | -357 | ' |
Collectively evaluated for impairment | -283 | -357 | -283 | -357 | ' |
Collectively evaluated for impairment | 2,197 | 3,458 | 2,197 | 3,458 | ' |
Finance receivables, net | 2,197 | 3,458 | 2,197 | 3,458 | ' |
Impaired financing receivable | $0 | ' | $0 | ' | $0 |
Pre-settlement advances and attorney cost financing | ' | ' | ' | ' | ' |
Activity in the allowance for losses | ' | ' | ' | ' | ' |
Minimum term of financing receivable | ' | ' | '1 year | ' | ' |
VIE_and_Other_Finance_Receivab8
VIE and Other Finance Receivables, net of Allowance for Losses (Details 4) (Predecessor, VIE and Other Finance Receivables, net, USD $) | Sep. 30, 2013 | Jun. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | ||||||
VIE and Other Finance Receivables, net of Allowance for Losses | ' | ' | ' | ' | ' | ' |
Reserve for financing receivable | $7,383 | $6,757 | $4,650 | $3,251 | $2,508 | $1,021 |
Pre-settlement funding transactions | ' | ' | ' | ' | ' | ' |
VIE and Other Finance Receivables, net of Allowance for Losses | ' | ' | ' | ' | ' | ' |
Gross financing receivable | 55,460 | ' | 62,775 | ' | ' | ' |
Reserve for financing receivable | 7,054 | 6,282 | 4,194 | 2,562 | 1,644 | 670 |
Pre-settlement funding transactions | 2009 | ' | ' | ' | ' | ' | ' |
VIE and Other Finance Receivables, net of Allowance for Losses | ' | ' | ' | ' | ' | ' |
Gross financing receivable | 5,270 | ' | 6,276 | ' | ' | ' |
Pre-settlement funding transactions | 2010 | ' | ' | ' | ' | ' | ' |
VIE and Other Finance Receivables, net of Allowance for Losses | ' | ' | ' | ' | ' | ' |
Gross financing receivable | 6,116 | ' | 9,891 | ' | ' | ' |
Pre-settlement funding transactions | 2011 | ' | ' | ' | ' | ' | ' |
VIE and Other Finance Receivables, net of Allowance for Losses | ' | ' | ' | ' | ' | ' |
Gross financing receivable | 11,978 | ' | 17,770 | ' | ' | ' |
Pre-settlement funding transactions | 2012 | ' | ' | ' | ' | ' | ' |
VIE and Other Finance Receivables, net of Allowance for Losses | ' | ' | ' | ' | ' | ' |
Gross financing receivable | 19,522 | ' | 28,838 | ' | ' | ' |
Pre-settlement funding transactions | 2013 | ' | ' | ' | ' | ' | ' |
VIE and Other Finance Receivables, net of Allowance for Losses | ' | ' | ' | ' | ' | ' |
Gross financing receivable | 12,574 | ' | ' | ' | ' | ' |
Attorney cost financing | ' | ' | ' | ' | ' | ' |
VIE and Other Finance Receivables, net of Allowance for Losses | ' | ' | ' | ' | ' | ' |
Gross financing receivable | 2,480 | ' | 3,072 | ' | ' | ' |
Reserve for financing receivable | $283 | $293 | $269 | $357 | $482 | $5 |
VIE_and_Other_Finance_Receivab9
VIE and Other Finance Receivables, net of Allowance for Losses (Details 5) (Predecessor, VIE and Other Finance Receivables, net, USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Portfolio delinquency status | ' | ' |
30-59 Days Past Due | ' | $8 |
Greater than 90 Days | 172 | 54 |
Total Past Due | 172 | 62 |
Current | 85,602 | 93,206 |
VIE and Other Finance Receivables, net | 85,774 | 93,268 |
Structured settlements and annuities | ' | ' |
Portfolio delinquency status | ' | ' |
30-59 Days Past Due | ' | 8 |
Greater than 90 Days | 172 | 54 |
Total Past Due | 172 | 62 |
Current | 25,870 | 26,012 |
VIE and Other Finance Receivables, net | 26,042 | 26,074 |
Lottery winnings | ' | ' |
Portfolio delinquency status | ' | ' |
Current | 59,732 | 63,430 |
VIE and Other Finance Receivables, net | 59,732 | 63,430 |
Life insurance premium financing | ' | ' |
Portfolio delinquency status | ' | ' |
Current | ' | 3,764 |
VIE and Other Finance Receivables, net | ' | $3,764 |
VIE_Borrowings_Under_Revolving2
VIE Borrowings Under Revolving Credit Facilities and Other Similar Borrowings (Details) (Predecessor, USD $) | 9 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 |
VIE Borrowings Under Revolving Credit Facilities and Other Similar Borrowings | ' | ' |
VIE borrowings under revolving credit facilities and other similar borrowings | $49,168 | $27,380 |
JGW-S III | Variable funding note facility | ' | ' |
VIE Borrowings Under Revolving Credit Facilities and Other Similar Borrowings | ' | ' |
VIE borrowings under revolving credit facilities and other similar borrowings | 12,050 | 183 |
JGW IV | Credit facility | ' | ' |
VIE Borrowings Under Revolving Credit Facilities and Other Similar Borrowings | ' | ' |
VIE borrowings under revolving credit facilities and other similar borrowings | 10,231 | 4,171 |
JGW V | Multi-tranche and lender credit facility | ' | ' |
VIE Borrowings Under Revolving Credit Facilities and Other Similar Borrowings | ' | ' |
VIE borrowings under revolving credit facilities and other similar borrowings | 11,763 | 5,530 |
Peach One | Credit facility | ' | ' |
VIE Borrowings Under Revolving Credit Facilities and Other Similar Borrowings | ' | ' |
VIE borrowings under revolving credit facilities and other similar borrowings | 15,124 | 17,527 |
Skolvus 1 GMbh & Co. KG | Life settlements financing facility | ' | ' |
VIE Borrowings Under Revolving Credit Facilities and Other Similar Borrowings | ' | ' |
VIE borrowings under revolving credit facilities and other similar borrowings | ' | -31 |
VIE | JGW-S III | Variable funding note facility | ' | ' |
VIE Borrowings Under Revolving Credit Facilities and Other Similar Borrowings | ' | ' |
Maximum borrowing capacity | 100,000 | 100,000 |
Interest payable monthly (as a percent) | 9.00% | 9.00% |
Revolving period | '2 years | '2 years |
Amortization period | '18 months | '18 months |
Monthly unused fee (as a percent) | 1.00% | 1.00% |
VIE | JGW IV | Credit facility | ' | ' |
VIE Borrowings Under Revolving Credit Facilities and Other Similar Borrowings | ' | ' |
Maximum borrowing capacity | 200,000 | 200,000 |
Monthly unused fee (as a percent) | 0.50% | 0.50% |
Variable interest rate basis | 'LIBOR | 'LIBOR |
Margin added to variable interest rate basis (as a percent) | 5.00% | 5.00% |
VIE | JGW IV | Credit facility | Minimum | ' | ' |
VIE Borrowings Under Revolving Credit Facilities and Other Similar Borrowings | ' | ' |
Interest rate floor (as a percent) | 5.00% | 5.00% |
VIE | JGW V | Multi-tranche and lender credit facility | ' | ' |
VIE Borrowings Under Revolving Credit Facilities and Other Similar Borrowings | ' | ' |
Maximum borrowing capacity | 300,000 | 275,000 |
Monthly unused fee (as a percent) | 0.63% | 0.75% |
VIE | JGW V | Multi-tranche and lender credit facility | Tranche A | LIBOR | ' | ' |
VIE Borrowings Under Revolving Credit Facilities and Other Similar Borrowings | ' | ' |
Variable interest rate basis | 'LIBOR | 'LIBOR |
Interest rate (as a percent) | 3.18% | 3.71% |
Margin added to variable interest rate basis (as a percent) | 3.00% | 3.50% |
VIE | JGW V | Multi-tranche and lender credit facility | Tranche A | Commercial Paper rate | ' | ' |
VIE Borrowings Under Revolving Credit Facilities and Other Similar Borrowings | ' | ' |
Variable interest rate basis | 'Commercial Paper rate | 'Commercial Paper rate |
Interest rate (as a percent) | 3.29% | 3.90% |
Margin added to variable interest rate basis (as a percent) | 3.00% | 3.50% |
VIE | JGW V | Multi-tranche and lender credit facility | Tranche B | ' | ' |
VIE Borrowings Under Revolving Credit Facilities and Other Similar Borrowings | ' | ' |
Variable interest rate basis | 'LIBOR | 'LIBOR |
Interest rate (as a percent) | 5.68% | 6.21% |
Margin added to variable interest rate basis (as a percent) | 5.50% | 6.00% |
VIE | Peach One | Credit facility | ' | ' |
VIE Borrowings Under Revolving Credit Facilities and Other Similar Borrowings | ' | ' |
Maximum borrowing capacity | $40,000 | $40,000 |
Monthly unused fee (as a percent) | 0.50% | 0.50% |
Interest rate floor (as a percent) | 4.50% | 4.50% |
Variable interest rate basis | 'prime rate | 'prime rate |
Interest rate (as a percent) | 4.50% | 4.50% |
Margin added to variable interest rate basis (as a percent) | 1.00% | 1.00% |
VIE | Skolvus 1 GMbh & Co. KG | Life settlements financing facility | ' | ' |
VIE Borrowings Under Revolving Credit Facilities and Other Similar Borrowings | ' | ' |
Variable interest rate basis | ' | 'three-month Euribor |
Interest rate (as a percent) | ' | 7.49% |
Margin added to variable interest rate basis (as a percent) | ' | 7.30% |
VIE_LongTerm_Debt_Details
VIE Long-Term Debt (Details) (Predecessor, USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Nov. 30, 2010 | Sep. 30, 2013 | Dec. 31, 2012 | Nov. 30, 2010 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2011 | Sep. 30, 2013 | Aug. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Nov. 30, 2010 | Sep. 30, 2013 | Nov. 30, 2010 | Dec. 31, 2010 | Dec. 31, 2010 | Dec. 31, 2010 |
In Thousands, unless otherwise specified | PLMT Permanent Facility | PLMT Permanent Facility | Residual Term Facility | Residual Term Facility | Long-Term Presettlement Facility | Long-Term Presettlement Facility | 2012-A Facility | 2012-A Facility | LCSS Facility (2010-C) | LCSS Facility (2010-C) | LCSS Facility (2010-C) | LCSS Facility (2010-D) | LCSS Facility (2010-D) | LCSS Facility (2010-D) | VIE | VIE | VIE | VIE | VIE | VIE | VIE | VIE | VIE | VIE | VIE | VIE | VIE | VIE | VIE | VIE | ||
PLMT Permanent Facility | Residual Term Facility | Term debt maturing on September 15, 2018 | Term debt maturing on September 15, 2018 | Term debt maturing on September 15, 2019 | Term debt maturing on September 15, 2019 | Long-Term Presettlement Facility | 2012-A Facility | 2012-A Facility | LCSS Facility (2010-C) | LCSS Facility (2010-C) | LCSS Facility (2010-D) | LCSS Facility (2010-D) | LCSS Facility (2010-D) | LCSS Facility (2010-D) | LCSS Facility (2010-D) | |||||||||||||||||
LCSS III | LCSS III | LCSS, LLC | LCSS II | LCSS, LLC | ||||||||||||||||||||||||||||
LCSS II | LCSS III | |||||||||||||||||||||||||||||||
VIE long-term debt | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
VIE long-term debt | $154,020 | $162,799 | $48,241 | $50,008 | $69,560 | $70,000 | $13,861 | $20,289 | $2,319 | $2,463 | $12,880 | $12,880 | $12,880 | $7,159 | $7,159 | $7,159 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Face amount of debt | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 75,000 | ' | ' | 56,000 | ' | 14,000 | 45,100 | ' | ' | ' | 12,880 | ' | 7,159 | ' | ' | ' |
Variable interest rate basis | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'one-month LIBOR | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Margin added to variable interest rate basis (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.25% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rate until September 15, 2014 (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rate after September 15, 2014 (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 9.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Frequency of periodic payment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'Annual | ' | 'Annual | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Annual principal payments required | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5,500 | ' | 2,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rate (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 9.25% | ' | 9.25% | 10.00% | ' | 10.00% | ' | ' | ' | ' |
Proceeds from notes | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,463 | ' | ' | ' | ' | ' | ' | ' | ' |
Payment to purchase membership interest | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $155 |
Membership interests held (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100.00% | 100.00% | ' |
VIE_Longterm_Debt_Issued_by_Se2
VIE Long-term Debt Issued by Securitization and Permanent Financing trusts, at Fair Market Value (Details) (Predecessor, USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Mar. 16, 2012 | Mar. 16, 2012 | Mar. 16, 2012 | Jul. 25, 2012 | Jul. 25, 2012 | Jul. 25, 2012 | Mar. 20, 2013 | Mar. 20, 2013 | Mar. 20, 2013 | Jul. 30, 2013 | Jul. 30, 2013 | Jul. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 |
VIE | VIE | VIE | VIE | VIE | VIE | VIE | VIE | VIE | VIE | VIE | VIE | VIE | VIE | VIE | VIE | VIE | VIE | VIE | |||
item | item | 2012-1 | 2012-1 | 2012-1 | 2012-2 | 2012-2 | 2012-2 | 2013-1 | 2013-1 | 2013-1 | 2013-2 | 2013-2 | 2013-2 | Securitization trusts | Securitization trusts | Permanent financing VIEs | Permanent financing VIEs | ||||
Aaa | Baa2 | Aaa | Baa2 | Aaa | Baa2 | Aaa | Baa2 | ||||||||||||||
VIE Long-term Debt Issued by Securitization and Permanent Financing trusts, at Fair Market Value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of asset securitization transactions completed | ' | ' | 2 | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Bond proceeds | ' | ' | ' | ' | ' | $232,400,000 | ' | ' | $158,000,000 | ' | ' | $216,500,000 | ' | ' | $174,600,000 | ' | ' | ' | ' | ' | ' |
Receivables securitized | ' | ' | ' | ' | ' | 4,476,000 | ' | ' | 3,016,000 | ' | ' | 2,425,000 | ' | ' | 3,410,000 | ' | ' | ' | ' | ' | ' |
Deal discount rate (as a percent) | ' | ' | ' | ' | ' | 4.62% | ' | ' | 4.27% | ' | ' | 3.65% | ' | ' | 4.49% | ' | ' | ' | ' | ' | ' |
Retained interest % | ' | ' | ' | ' | ' | 6.75% | ' | ' | 6.75% | ' | ' | 6.75% | ' | ' | 6.75% | ' | ' | ' | ' | ' | ' |
Class allocation (as a percent) | ' | ' | ' | ' | ' | ' | 85.00% | 8.25% | ' | 85.00% | 8.25% | ' | 85.25% | 8.00% | ' | 85.25% | 8.00% | ' | ' | ' | ' |
Outstanding Principal | ' | ' | 3,233,769,000 | ' | 3,012,979,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,913,160,000 | 2,693,597,000 | 320,609,000 | 319,382,000 |
Fair Value | $3,437,861,000 | $3,229,591,000 | $3,437,861,000 | ' | $3,229,591,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $3,095,261,000 | $2,892,466,000 | $342,600,000 | $337,125,000 |
Term_Loan_Payable_Details
Term Loan Payable (Details) (USD $) | Feb. 08, 2013 | Feb. 08, 2013 | 31-May-13 | Sep. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Sep. 30, 2013 | Feb. 08, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Feb. 08, 2013 | 31-May-13 | Feb. 08, 2013 | Jul. 12, 2011 | Jul. 12, 2011 | Jul. 12, 2011 | Dec. 31, 2012 | Dec. 31, 2011 | Jul. 12, 2011 |
Letters of credit | Predecessor | Predecessor | Predecessor | Predecessor | Predecessor | Predecessor | Predecessor | Predecessor | Predecessor | Predecessor | Predecessor | Predecessor | Predecessor | Predecessor | Predecessor | Predecessor | Predecessor | Predecessor | Predecessor | |
Term Loan | New term loan | New term loan | New term loan | New term loan | Credit Facility | Credit Facility | Additional term loan issued May 2013 | PGHI | PGHI | OAC Merger | OAC Merger | OAC Merger | OAC Merger | OAC Merger | ||||||
Eurodollar | Base rate | Term Loan | Term Loan | Term Loan | Term Loan | Term Loan | PGHI | |||||||||||||
Eurodollar | Eurodollar | Eurodollar | Term Loan | |||||||||||||||||
Term loan payable | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loan amount | ' | ' | ' | ' | ' | ' | ' | $425,000,000 | ' | ' | ' | ' | $150,000,000 | ' | ' | $176,489,000 | ' | ' | ' | ' |
Variable rate basis | ' | ' | ' | ' | ' | ' | ' | ' | 'Libor | 'Prime | ' | ' | ' | ' | ' | ' | 'Eurodollar base rate | ' | ' | ' |
Interest rate (as a percent) | ' | ' | ' | ' | ' | ' | 9.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8.75% | 8.75% | ' |
Margin on variable rate (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | 7.50% | 6.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum amount of distributions to fund costs of defending certain litigation | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 9,000,000 |
Principal payment at closing | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10,000,000 | ' | ' | ' | ' | ' |
Member's capital free of limitations on payment of dividends | ' | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Member's capital | ' | ' | ' | 37,996,000 | 442,818,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revolving commitment | 10,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 20,000,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rate floor (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | 1.50% | 2.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unused fee (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding borrowings | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash distribution | ' | 309,600,000 | 150,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Asset distribution | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $16,300,000 | ' | ' | ' | ' | ' | ' |
Number of common interest shares issued for preferred interest | ' | ' | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Derivative_Financial_Instrumen2
Derivative Financial Instruments (Details) (Predecessor, USD $) | 3 Months Ended | 9 Months Ended | 0 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 9 Months Ended | 9 Months Ended | |||||||||||||||||||||||||||||||||||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Jul. 31, 2013 | Jul. 31, 2012 | Sep. 30, 2013 | Mar. 31, 2013 | Sep. 30, 2012 | Mar. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 |
Interest Rate Swaps | Interest Rate Swaps | Interest Rate Swaps | Interest Rate Swaps | Interest Rate Swaps | Interest Rate Swaps | Interest Rate Swaps | Interest Rate Swaps | Interest Rate Swaps | Interest Rate Swaps | Interest Rate Swaps | Interest Rate Swaps | Interest Rate Swaps | Interest Rate Swaps | Interest Rate Swaps | Interest Rate Swaps | Interest Rate Swaps | Interest Rate Swaps | Interest Rate Swaps | Interest Rate Swaps | Interest Rate Swaps | Interest Rate Swaps | JGW V, LLC | JGW V, LLC | 321 Henderson I | 321 Henderson I | 321 Henderson I | 321 Henderson I | 321 Henderson II | 321 Henderson II | 321 Henderson II | 321 Henderson II | 321 Henderson II | 321 Henderson II | 321 Henderson II | 321 Henderson II | 321 Henderson II | 321 Henderson II | 321 Henderson II | 321 Henderson II | PSS | PSS | PLMT | PLMT | ||||||
Revolving credit facilities and other similar borrowings | Revolving credit facilities and other similar borrowings | Revolving credit facilities and other similar borrowings | Revolving credit facilities and other similar borrowings | Revolving credit facilities and other similar borrowings | Revolving credit facilities and other similar borrowings | Revolving credit facilities and other similar borrowings | Revolving credit facilities and other similar borrowings | Long-term debt issued by securitization and permanent financing trusts | Long-term debt issued by securitization and permanent financing trusts | Long-term debt issued by securitization and permanent financing trusts | Long-term debt issued by securitization and permanent financing trusts | Long-term debt issued by securitization and permanent financing trusts | Long-term debt issued by securitization and permanent financing trusts | Long-term debt issued by securitization and permanent financing trusts | Borrowings under PSS and PLMT | Borrowings under PSS and PLMT | Borrowings under PSS and PLMT | Borrowings under PSS and PLMT | Borrowings under PSS and PLMT | Borrowings under PSS and PLMT | Borrowings under PSS and PLMT | Interest Rate Swaps | Interest Rate Swaps | Interest Rate Swaps | Interest Rate Swaps | Interest Rate Swaps | Interest Rate Swaps | Interest Rate Swaps | Interest Rate Swaps | Interest Rate Swaps | Interest Rate Swaps | Interest Rate Swaps | Interest Rate Swaps | Interest Rate Swaps | Interest Rate Swaps | Interest Rate Swaps | Interest Rate Swaps | Interest Rate Swaps | Interest Rate Swaps | Interest Rate Swaps | Interest Rate Swaps | Interest Rate Swaps | Interest Rate Swaps | ||||||
Hedge accounting has not been applied | Hedge accounting has not been applied | Hedge accounting has not been applied | Hedge accounting has not been applied | Hedge accounting has not been applied | Hedge accounting has not been applied | Hedge accounting has not been applied | Hedge accounting has not been applied | Hedge accounting has not been applied | Hedge accounting has not been applied | Hedge accounting has not been applied | Hedge accounting has not been applied | Hedge accounting has not been applied | Hedge accounting has not been applied | Hedge accounting has not been applied | Revolving credit facility | 2004-A A-1 | 2004-A A-1 | 2005-1 A-1 | 2005-1 A-1 | 2006-1 A-1 | 2006-1 A-1 | 2006-2 A-1 | 2006-2 A-1 | 2006-3 A-1 | 2006-3 A-1 | 2006-4 A-1 | 2006-4 A-1 | 2007-1 A-1 | 2007-1 A-1 | 2007-2 A-1 | 2007-2 A-1 | Hedge accounting has not been applied | Hedge accounting has not been applied | Hedge accounting has not been applied | Hedge accounting has not been applied | ||||||||||||||
item | item | item | Minimum | Maximum | item | item | item | Minimum | Maximum | Hedge accounting has not been applied | Hedge accounting has not been applied | Hedge accounting has not been applied | Hedge accounting has not been applied | Hedge accounting has not been applied | Hedge accounting has not been applied | Hedge accounting has not been applied | Hedge accounting has not been applied | Hedge accounting has not been applied | Hedge accounting has not been applied | Hedge accounting has not been applied | Hedge accounting has not been applied | Hedge accounting has not been applied | Hedge accounting has not been applied | Hedge accounting has not been applied | Hedge accounting has not been applied | Hedge accounting has not been applied | VIE | VIE | |||||||||||||||||||||
Derivative financial instruments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Notional | $566,656 | ' | $566,656 | ' | $605,024 | ' | ' | ' | ' | ' | ' | ' | ' | $300,373 | ' | $300,373 | ' | $338,143 | ' | ' | $254,397 | ' | $254,397 | ' | $266,881 | ' | ' | $11,886 | $11,886 | $42,905 | $50,858 | $76,839 | $86,766 | $22,107 | $26,307 | $24,552 | $27,560 | $27,058 | $30,493 | $24,701 | $27,402 | $39,613 | $42,670 | $42,598 | $46,087 | $196,094 | $205,180 | $58,303 | $61,701 |
Fixed interest rate (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4.50% | 5.77% | ' | ' | ' | ' | ' | 4.30% | 8.70% | ' | 2.74% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Floating rate basis | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '1 month LIBOR | ' | ' | ' | ' | ' | ' | '1 month LIBOR | ' | ' | ' | ' | ' | '1 month LIBOR | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Term of contract | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '9 years | '22 years | ' | ' | ' | ' | ' | '1 month | '21 years | ' | '15 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
(Gain) loss on termination of derivative | -525 | 831 | -351 | 457 | ' | ' | ' | 525 | ' | -831 | ' | 351 | -457 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unrealized gain (loss) | ' | ' | 40,408 | -130 | ' | ' | ' | -696 | ' | -291 | ' | -181 | -641 | 2,640 | 1,316 | 19,115 | 2,532 | ' | ' | ' | 2,289 | -441 | 21,501 | -2,021 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Terminated notional value | ' | ' | ' | ' | ' | 45,690 | 32,036 | ' | 55,351 | ' | 64,300 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of outstanding derivatives | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8 | ' | 8 | ' | 8 | ' | ' | 165 | ' | 165 | ' | 165 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair Market Value | ($81,125) | ' | ($81,125) | ' | ($121,498) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ($181) | ' | ($4,313) | ($6,492) | ($9,785) | ($14,362) | ($2,442) | ($3,581) | ($3,625) | ($5,181) | ($3,471) | ($5,001) | ($3,009) | ($4,271) | ($6,093) | ($9,031) | ($9,174) | ($13,072) | ($29,195) | ($46,407) | ($9,837) | ($14,100) |
Commitments_and_Contingencies_
Commitments and Contingencies (Details) (Predecessor, USD $) | 9 Months Ended | 12 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 | Jun. 30, 2012 |
Arrangement | Counterparty under agreement to purchase LCSS assets | ' | ' | ' |
Commitments and contingencies | ' | ' | ' |
Maximum amount of fund raised by counterparty to purchase LCSS assets | ' | ' | $50,000 |
LCSS assets sold to counterparty | ' | 3,150 | ' |
Percentage of target IRR above original target IRR paid by counterparty | 3.50% | ' | ' |
Borrowing Agreement | Counterparty under agreement to purchase LCSS assets | ' | ' | ' |
Commitments and contingencies | ' | ' | ' |
Maximum borrowing capacity of counterparty | 11,300 | ' | ' |
Amount owed by counterparty | 9,008 | 8,637 | ' |
Annual rate of interest for counterparty borrowing (as a percent) | 5.35% | ' | ' |
VIE | SRF6 | ' | ' | ' |
Commitments and contingencies | ' | ' | ' |
Outstanding balance in hedge breakage reserve account | 3,682 | $11,847 | ' |
Percentage of securitization notes on which lender has right of first refusal to purchase at current market terms | 25.00% | ' | ' |
Restructure_Expense_Details
Restructure Expense (Details) (Predecessor, Closure of Boynton Beach office, USD $) | 1 Months Ended | 9 Months Ended |
In Thousands, unless otherwise specified | Apr. 30, 2013 | Sep. 30, 2013 |
Reconciliation of associated restructure liability | ' | ' |
Restructure expense | $3,224 | $3,224 |
Payments for restructure charges | ' | -2,456 |
Balance at the end of the period | ' | 768 |
Compensation and benefits | ' | ' |
Reconciliation of associated restructure liability | ' | ' |
Restructure expense | ' | 2,851 |
General and administrative expense | ' | ' |
Reconciliation of associated restructure liability | ' | ' |
Restructure expense | ' | $373 |
Subsequent_Events_Details
Subsequent Events (Details) (USD $) | Sep. 30, 2013 | Nov. 14, 2013 | Nov. 14, 2013 | Nov. 14, 2013 | Sep. 30, 2013 | Nov. 14, 2013 | Nov. 14, 2013 | Nov. 14, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Oct. 10, 2013 | Oct. 18, 2013 | Dec. 06, 2013 | Dec. 06, 2013 | Dec. 06, 2013 | Oct. 02, 2013 | Dec. 18, 2013 | Oct. 21, 2013 | Sep. 30, 2013 | Nov. 15, 2013 | Nov. 15, 2013 | Nov. 15, 2013 |
Subsequent Events | Subsequent Events | Subsequent Events | Subsequent Events | Subsequent Events | Subsequent Events | Subsequent Events | Predecessor | Predecessor | Predecessor | Predecessor | Predecessor | Predecessor | Predecessor | Predecessor | Predecessor | Predecessor | Predecessor | Predecessor | Predecessor | Predecessor | ||
JGWPT Holdings, LLC | Class A Shares | Class A Shares | Class A Shares | Class A Shares | Class C | Class C | New term loan | New term loan | Subsequent Events | Subsequent Events | Subsequent Events | Subsequent Events | Subsequent Events | Subsequent Events | Subsequent Events | Subsequent Events | Subsequent Events | Subsequent Events | Subsequent Events | Subsequent Events | ||
JGWPT Holdings, LLC | JGWPT Holdings, LLC | Underwriter's overallotment option | PGHI Corp | Eurodollar | Base rate | 2013-3 | Long-term debt | New term loan | New term loan | New term loan | JGW IV | JGW IV | Peach One | Peach One | JGW VII, LLC | JGW VII, LLC | JGW VII, LLC | |||||
SRF6 | Eurodollar | Base rate | Credit facility | Credit facility | Credit facility | Credit facility | Credit facility | Credit facility | Credit facility | |||||||||||||
VIE | LIBOR | Commercial paper rate | ||||||||||||||||||||
Subsequent events | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum borrowing capacity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $200,000,000 | $50,000,000 | $35,000,000 | $40,000,000 | $300,000 | ' | ' |
Variable rate basis | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'one-month LIBOR | ' | ' | ' | ' | 'one-month LIBOR | 'commercial paper rate |
Margin on variable rate (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | 7.50% | 6.50% | ' | ' | ' | 6.00% | 5.00% | 3.25% | ' | ' | ' | ' | ' | 2.75% |
Bond size | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 212,700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Deal discount rate (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4.37% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Repayment of long term debt | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 64,000,000 | 123,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Gain on debt extinguishment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 22,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Prepayment fees | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Hedge breakage costs | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares issued in initial public offering | ' | ' | 11,212,500 | ' | ' | 1,462,500 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Par value per share (in dollars per share) | $0.00 | ' | $0.00 | ' | ' | ' | $0.00 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net proceeds from initial public offering | ' | ' | 141,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of common interests acquired | ' | 11,212,500 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Ownership interest (as a percent) | ' | 37.90% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | ' | 62.10% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares issued pursuant to merger | ' | ' | ' | 1 | 1 | ' | ' | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revolving period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '3 years | ' | ' |
Amortization period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '24 months | ' | ' |
Unused line fee (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.50% | ' | ' |
Interest rate floor (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | 1.50% | 2.50% | ' | ' | ' | 1.00% | 2.00% | ' | ' | ' | ' | ' | ' | ' |
Amendment, legal and other fees | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $13,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |