S-1/A: Jefferson Capital, Inc. Files S-1/A for Initial Public Offering Amidst Strong Growth and Strategic Expansion in Debt Recovery Market

Sentiment:

Initial Public Offering Registration Statement 23 May 2025 8:48 PM

📋All filings for Jefferson Capital, INC / De

Jefferson Capital, Inc., a leading purchaser and manager of charged-off and insolvency consumer accounts, has filed an S-1/A registration statement for its initial public offering, highlighting robust financial performance, strategic acquisitions, and ambitious growth plans across its global operations.

Capital raiseThe company is undertaking an Initial Public Offering (IPO) of its common stock.On May 2, 2025, Jefferson Capital Holdings, LLC completed an offering of $500.0 million aggregate principal amount of 8.250% senior notes due 2030.A majority of the proceeds from the 2030 Notes offering were used to pay down the outstanding balance under the Revolving Credit Facility.The company expects to use approximately $X million of the net proceeds from the IPO to repay outstanding borrowings under the Revolving Credit Facility.The remaining net proceeds from the IPO are intended for general corporate purposes, including funding growth, technology development, working capital, operating expenses, and capital expenditures.The company may also use a portion of the net proceeds and/or future borrowings under the Revolving Credit Facility to acquire complementary businesses, products, services, or technologies.The company may be required to seek additional capital in the future to fund its growth strategy, potentially through additional borrowings under the Revolving Credit Facility, other credit/financing agreements, or the sale of additional securities.

Better than expectedNet income for Q1 2025 increased by 95.1% year-over-year to $64.2 million.Adjusted EBITDA for Q1 2025 increased by 70.7% year-over-year to $92.0 million.Total revenues for Q1 2025 increased by 55.1% year-over-year to $154.9 million.Deployments for Q1 2025 increased by 72.8% year-over-year to $175.2 million.Collections for Q1 2025 increased by 105.1% year-over-year to $260.9 million.The company's cumulative collections have consistently outperformed original forecasts, demonstrating accuracy in modeling and ability to improve performance.The cash efficiency ratio of 68.7% in 2024 is superior to primary competitors, indicating better operational efficiency.

Summary

Jefferson Capital, Inc. is pursuing an Initial Public Offering (IPO) of its common stock, with an expected public offering price between $X and $X per share, and has applied to list on Nasdaq under the symbol JCAP.
The company reported net income of $64.2 million for the three months ended March 31, 2025, a significant increase from $32.9 million for the same period in 2024.
Adjusted EBITDA reached $92.0 million for the three months ended March 31, 2025, up from $53.9 million in the prior year period.
Total revenues for the three months ended March 31, 2025, were $154.9 million, a 55.1% increase from $99.9 million in the comparable period of 2024.
Estimated Remaining Collections (ERC) stood at $2,837.9 million as of March 31, 2025, representing a 3.4% increase from December 31, 2024, with 50.0% ($1,420.1 million) expected to be collected over 2025 and 2026.
Deployments (portfolio purchases) increased by 72.8% to $175.2 million for the three months ended March 31, 2025, compared to $101.4 million in the prior year period.
Collections from purchased receivables grew by 105.1% to $260.9 million for the three months ended March 31, 2025, from $127.2 million in the same period of 2024.
The company completed the Conns Portfolio Purchase on December 3, 2024, acquiring approximately $2.1 billion in face value of loans for $245 million, which contributed $30.0 million in revenue and $23.3 million in net operating income in Q1 2025.
Net debt, adjusted for the 2030 Notes offering and a May 9, 2025 dividend, was $1,249.3 million as of March 31, 2025, with a leverage ratio of 2.17x net debt to adjusted cash EBITDA for the year ended December 31, 2024.
The company intends to use approximately $X million of the IPO net proceeds to repay outstanding borrowings under its Revolving Credit Facility and the remainder for general corporate purposes, including funding growth and technology development.

Sentiment

Score: 8

Explanation: The company demonstrates strong financial performance with significant growth in revenue, net income, and adjusted EBITDA. It holds leading market positions in its niche, exhibits superior operational efficiency, and has a conservative leverage profile. Strategic acquisitions and a clear growth strategy, including international expansion and technological innovation, indicate robust future potential. However, inherent industry risks, regulatory complexities, and reliance on debt financing warrant a balanced view.

Positives

Demonstrated consistent and strong financial growth, with net income and adjusted EBITDA showing significant year-over-year increases.
Maintains a best-in-class operating efficiency, with a cash efficiency ratio of 68.7% in 2024, outperforming primary competitors (54.2% to 58.9%).
Holds leadership positions in several underpenetrated asset classes in the U.S., Canada, and U.K., including nonperforming telecom, auto finance, and insolvency receivables.
Possesses superior analytics and proprietary through-the-cycle data from over 22 years of operation, enabling highly predictable modeling and attractive returns.
Benefits from a variable cost business model, primarily outsourcing commoditized collection activities, which allows for flexible scaling based on market opportunities and provides a cost-to-collect advantage.
Has a conservative leverage profile (2.17x net debt to adjusted cash EBITDA) compared to peers (2.6x to 2.9x), providing financial flexibility for expansion.
Boasts an exemplary compliance track record, having never failed a regulatory audit in its 22-year history, including two full-scope CFPB audits with no required changes, which is a key differentiator for clients.
Successfully integrated strategic acquisitions like Canaccede and Refinancia, expanding its geographic footprint and data capabilities.
Actively adding new clients, with 32 new clients in 2023, 14 in 2024, and 4 in Q1 2025, including first-time sellers, diversifying its client base.
Leverages proprietary digital technologies and AI in Latin America for enhanced efficiency and consumer engagement, with potential for broader adoption.

Negatives

Credit card revenue showed a declining trend in the second half of 2024 and the first three months of 2025, particularly in the Canadian credit card portfolio.
The Conns Portfolio Purchase, while contributing to revenue, is expected to see its revenue contribution decline rapidly after the next twelve months as the portfolio is in run-off with no new origination activity.
Quarterly operating income may be lower during periods of higher collection activity (e.g., U.S. tax season) due to revenue recognition based on an established effective interest rate and elevated collection expenses.
The company's leverage increased temporarily at the end of 2024 due to the Conns Portfolio Purchase.
New legislative changes in Canada for credit agreements originated on or after January 1, 2025, are expected to cause future new credit card originations to decline in that market.

Risks

A deterioration in the economic or inflationary environment could negatively affect consumers' ability to pay debts and reduce the real value of purchased receivables.
Inability to continually replace nonperforming loans with additional portfolios at appropriate prices could adversely affect profitability and efficiency.
Failure to collect sufficient amounts from nonperforming loans to fund operations, or inaccuracies in statistical and behavioral models, could lead to unprofitability.
An increase in certain types of insolvency proceedings and bankruptcy filings involving liquidations could decrease collections on unsecured receivables.
Disruption or failure of outsourced and offshore third-party collection activities (e.g., Mumbai operation) could adversely affect business operations, financial condition, and reputation.
Goodwill impairment charges could negatively impact net income and stockholders' equity due to adverse changes in macroeconomic conditions, market conditions, or financial results.
Loss contingency accruals may not be adequate to cover actual losses from judicial, regulatory, or arbitration proceedings.
Solicitors of Moriarty, the wholly-owned U.K. law firm subsidiary, could act outside the company's financial interests or face enforcement actions/sanctions from regulatory bodies.
Expected collections from the Conns Portfolio Purchase may not be realized, or expenses from integrating former Conns FTEs may be higher than anticipated.
International operations expose the company to risks such as changes in local political/economic conditions, foreign exchange controls, currency fluctuations, different labor laws, and potential nationalization of industries.
Lack of collection experience with new asset classes or in new geographies could lead to losses.
Compliance with complex and evolving international and U.S. laws and regulations, including data privacy and anti-corruption laws, could increase costs or limit operations.
Evolving regulation in Latin America, particularly regarding new technologies like AI, could impose greater restrictions and increase compliance costs.
Ability to collect and enforce nonperforming and performing loans may be limited by federal, state, and international laws, regulations, and policies.
Failure to comply with government regulation of the collections industry could result in penalties, fines, litigation, reputational damage, or suspension of business operations.
Investigations, reviews, or enforcement actions by governmental authorities (e.g., CFPB, FTC) could lead to changes in business practices, reduced deployment volume, increased collection difficulty, or fines.
Changes in tax provisions or exposures to additional tax liabilities could have an adverse tax effect.
Recent changes in U.S. trade policy, such as tariffs, could indirectly affect the business by influencing consumer behavior and financial stability.
Loss of access to or public disclosure of proprietary data from data gathering systems and consumer profiles could materially and adversely affect the business.
A cybersecurity incident could damage reputation and adversely impact business and financial results.
Underperformance or failure of information technology infrastructure, networks, or communication systems could result in loss of productivity and business disruption.
Inability to adequately protect intellectual property rights could diminish competitive advantage.
Use of machine learning and AI technologies could adversely affect products/services, harm reputation, or cause liability if models are incorrectly designed, reliant on poor data, or used without sufficient oversight.
Use of leverage in business strategy may have adverse consequences, including difficulty satisfying obligations or obtaining additional financing.
Inability to generate sufficient cash flow or complete alternative financing plans could prevent meeting debt service obligations or business expansion.
Agreements governing indebtedness include restrictive covenants that may interfere with business activities.
Adverse changes in credit ratings could negatively impact access to capital markets and increase borrowing costs.
JCF Stockholders control the company, and their interests may conflict with those of other stockholders, including corporate opportunities.
The company expects to be a controlled company, qualifying for exemptions from certain Nasdaq corporate governance requirements, which may reduce protections for stockholders.
As an emerging growth company, compliance with reduced reporting requirements could make common stock less attractive to investors.
Requirements of being a public company may strain resources and distract management, particularly after no longer an emerging growth company.
If securities or industry analysts do not publish research, adversely change recommendations, or expectations are not met, stock price and trading volume could decline.
Failure to develop and maintain proper and effective internal control over financial reporting could adversely affect investor confidence.
Future sales of a significant portion of total outstanding shares could cause the market price to drop.
Additional issuances of common stock by the company will be dilutive to existing stockholders.
Anti-takeover provisions may delay or prevent a change of control.
Exclusive forum provisions may limit stockholders' ability to bring claims in a preferred judicial forum.
As a holding company, reliance on dividends and distributions from subsidiaries to meet obligations poses a risk.

Future Outlook

The company expects to collect 50.0% of its total Estimated Remaining Collections (ERC) over 2025 and 2026. It anticipates a rising market for nonperforming loans, driven by increasing delinquency and charge-off rates, which is expected to create more attractive deployment opportunities. The company plans to drive growth by leveraging its proprietary digital technologies, expanding its client base in core markets (U.S. and Canada), and extending its data and collection capabilities across various asset classes in Canada, the U.K., and Latin America. Strategic initiatives include expanding into performing or semi-performing loan purchasing in the U.S., organically entering new adjacent Latin American markets (Mexico, Chile, Panama, Costa Rica), and potentially acquiring a European platform due to market dislocation. The company also sees an opportunity to enter the larger U.K. high street bank market as competitors pull back. While the Conns Portfolio Purchase is expected to contribute significantly to revenue in the next 12 months, its contribution is projected to decline rapidly thereafter as the portfolio runs off. New credit card originations in Canada are expected to decline due to recent legislative changes.

Management Comments

David Burton, President and Chief Executive Officer, founded Jefferson Capital in 2002 and has been integral to its strategy, operations, and success, with over 30 years of experience in the debt recovery industry.
Management believes the company has successfully navigated over 22 years of credit cycle fluctuations, changing market dynamics, and evolving regulatory frameworks.
Management believes the company's superior operating efficiency allows it to earn a higher level of profit than competitors on equivalent purchases and enables continued scaling with increased profitability.
Management views the company's low level of leverage as a competitive advantage, allowing flexibility to expand deployments as market opportunities arise.
Management emphasizes a culture of compliance premised on treating consumers fairly and helping them achieve their financial goals, positioning the company well with regulators and clients.
Management believes the opportunity to grow deployments and ERC has been rising, with recent deployments underwritten at higher risk-adjusted returns than older vintages.
Management believes the company's proprietary digital collections platform and technology infrastructure contribute to higher returns and market share growth.
Management increasingly finds that the company's efficiency and lower cost-to-collect allow it to be competitive with larger debt buyers in the large-balance credit card market.
Management believes the company's experience and success in purchasing certain asset classes in the U.S. will allow it to grow market share in similar asset classes in other geographies.
Management believes the ability to evaluate, purchase, and service mixed portfolios of performing and non-performing loans will be a competitive advantage.
Management believes the interest from existing clients in selling portfolios in new Latin American markets indicates the attractiveness of the company's platform compared to local competitors.
Management believes there could be a future possibility to acquire assets of a European platform at an attractive entry price due to market dislocation.
Management believes competitors' exits from the U.K. high street bank market have created more favorable pricing and higher returns, presenting a growth opportunity.
Management believes the company's purchasing and client relationships are less concentrated than key competitors, who tend to focus on fewer asset classes and large purchases.
Management believes the company's operational strategy of owning high value-add aspects (data, analytics, technology) and outsourcing commoditized activities provides a competitive advantage and allows for disciplined pricing.
Management believes a compliant and efficient offshoring system (Mumbai) creates a cost-to-collect advantage relative to competitors.
Management believes the company has the opportunity to further increase its cost advantage and develop compliant generative AI capabilities for a sustainable competitive advantage.
Management believes the Latin American regulatory environment allows for the development and testing of new collection capabilities before broader adoption in other markets.

Industry Context

The U.S. consumer loan market is experiencing rising delinquency rates (2.75% as of Dec 31, 2024, highest since Q3 2012) and charge-offs (2.98% as of Dec 31, 2024, highest since Q3 2011), despite consistently low unemployment. The end of the student loan repayment 'on-ramp' on September 30, 2024, is further straining consumer finances. These trends are increasing the supply of charged-off loans available for sale, shifting market dynamics in favor of debt purchasers, and potentially leading to declining pricing and rising returns for these assets. Smaller competitors in the debt purchasing market face difficulties due to high operating costs and regulatory pressures, favoring larger participants like Jefferson Capital. In Europe, financial distress among major platforms due to overleverage and poor performance has created dislocation in capital markets, potentially offering attractive acquisition opportunities. The debt purchasing sector is evolving beyond prime-originated large-balance credit card receivables, with growing opportunities in consumer installment loans, telecom, auto finance, utilities, and buy now, pay later loans.

Comparison to Industry Standards

Jefferson Capital's cash efficiency ratio was 68.7% for the year ended December 31, 2024, significantly higher than its two primary competitors, whose ratios ranged from 54.2% to 58.9%.
The company's leverage ratio (net debt to adjusted cash EBITDA) was 2.17x as of March 31, 2025 (based on FY2024 EBITDA), which is lower than its two primary competitors, whose reported leverage as of December 31, 2024, ranged from 2.6x to 2.9x.
Jefferson Capital has never failed a regulatory audit in its 22-year history, including two full-scope CFPB supervisory audits (2015 and 2020-2021) where no existing practices were required to be changed, contrasting with some industry peers who have faced litigation, fines, and remediation from CFPB reviews.
The company is the largest purchaser of nonperforming telecom receivables in the United States and Canada, and the largest purchaser of nonperforming telecom and utilities receivables in the United Kingdom.
Jefferson Capital is the largest or second largest purchaser of both nonperforming and insolvent auto finance receivables and insolvent consumer receivables in the United States.
The company is the largest purchaser of both nonperforming and insolvent consumer receivables in Canada.
The company's cost-to-collect in its Insolvency business line (7.3% in 2024, 5.9% in Q1 2025, excluding asset repossession costs) is substantially lower than its Distressed business line (25.3% in 2024, 19.3% in Q1 2025, excluding court costs and U.K. servicing businesses), indicating efficient management of different debt types.
The company's proprietary ValuTiers segmentation process and co-sourced Mumbai operation contribute to an industry-leading cost-to-collect and cash efficiency ratio, despite handling smaller average account balances than some larger debt buyers.

Management Changes

Role	Previous Person	New Person	Effective Date	Reason
Chief Financial Officer	NA	Christo Realov	December 2024	Promotion from Senior Vice President of Corporate Development and Treasurer.
Director	Andrew Szemenyei	NA	May 2025	Resignation from the board of directors.
Director	NA	Beth Leonard	2024	Joined the board of directors.

Corporate Governance

Change Type	Description	Effective Date	Impact Assessment
Board Structure	The board of directors will be divided into three classes with staggered three-year terms, which may delay or prevent a change of management or control.	Upon effectiveness of registration statement	Potentially reduces shareholder influence over board composition and makes hostile takeovers more difficult.
Controlled Company Status	The company expects to be a 'controlled company' under Nasdaq rules, allowing it to elect not to comply with certain corporate governance requirements, such as having a majority independent board and fully independent compensation/nominating committees.	Immediately following this offering	Shareholders may not have the same protections as those afforded to stockholders of companies subject to all Nasdaq corporate governance requirements.
Corporate Opportunities Doctrine Waiver	The amended and restated certificate of incorporation will waive the corporate opportunities doctrine for JCF Stockholders and their affiliates, allowing them to engage in similar business activities or pursue opportunities that may be complementary to the company's business.	Upon completion of this offering	May lead to conflicts of interest where JCF Stockholders' interests conflict with the company's or its stockholders', and acquisition opportunities may not be available to the company.
Exclusive Forum Provision	The amended and restated certificate of incorporation and bylaws will designate the Delaware Court of Chancery as the exclusive forum for certain corporate disputes and federal district courts for Securities Act claims.	Upon completion of this offering	Aims to provide consistency in legal interpretations and efficient case administration, but may limit stockholders' ability to choose a judicial forum they find favorable, potentially discouraging certain claims.
Stockholder Action & Special Meetings	From the 'Trigger Date' (when JCF Stockholders own less than X% of voting stock), stockholders will only be able to take action at annual or special meetings, not by written consent. Special meetings can only be called by the board, Chairman, CEO, President, or other officer selected by the board.	Upon completion of this offering (with Trigger Date condition)	May delay the ability of stockholders to force consideration of proposals or take actions, including director removal, without board approval.
Advance Notice Requirements	Establishes advance notice procedures for stockholder proposals and director nominations at annual meetings, requiring compliance with ownership and information requirements.	Upon completion of this offering	Could delay stockholder actions favored by a majority of voting securities until the next meeting and discourage proxy contests.
Supermajority Vote for Amendments	From the 'Trigger Date', certain articles of the certificate of incorporation and bylaws will require an affirmative vote of at least X% of outstanding voting stock for amendment, repeal, or modification.	Upon completion of this offering (with Trigger Date condition)	Makes it more difficult for minority shareholders to amend key governance provisions.
Board Committees	Established an Audit Committee, Compensation Committee, Nominating and Corporate Governance Committee, and a Compliance Committee to oversee various aspects of governance, risk, and compliance.	Prior to completion of this offering	Enhances oversight of financial reporting, executive compensation, board composition, and regulatory compliance, contributing to a more structured governance framework.

Legal Proceedings

The company and its subsidiaries are subject to various legal proceedings and claims that arise in the ordinary course of business.
As of March 31, 2025, and for the fiscal years ended December 31, 2024 and 2023, there are no material pending legal proceedings to which the company or its subsidiaries are a party.

Related Party Transactions

The Reorganization involves transactions with entities affiliated with J.C. Flowers (controlling shareholder), members of Management Invest LLC, and former equity holders of Canaccede, who will exchange their interests for common stock.
The company intends to enter into a Registration Rights Agreement with JCF Stockholders, Management Stockholders, and Former Canaccede Stockholders, granting them certain registration rights for their shares.
A Stockholders Agreement will be entered into with JCF Stockholders, providing them the right to designate board nominees and requiring their prior written consent for certain significant corporate actions as long as they beneficially own at least X% of outstanding common stock.
Directors, officers, employees, and their friends/family members may purchase common stock in the directed share program at the initial public offering price.
Indemnification agreements will be entered into with each director and executive officer.
In February 2023, Jefferson Capital Systems, LLC sold a 26.75% beneficial ownership interest in a portfolio of performing installment loans to HH Warehouse LLC (affiliated with director Christopher Giles) for $2.9 million, and repurchased it in July 2024 for $1.4 million.
Bryan Szemenyei, President of Canaccede and son of former director Andrew Szemenyei, received C$0.4 million, C$0.3 million, and C$0.4 million in total compensation for 2024, 2023, and 2022, respectively.
On April 29, 2025, the company repurchased units from Bryan Szemenyei for $1.25 million.
On May 9, 2025, Jefferson Capital Holdings, LLC paid a $16 million distribution to its members.

Stakeholder Impact

**Shareholders:** The IPO aims to increase capitalization and financial flexibility, create a public market for common stock, and enable access to public equity markets. However, new investors will experience immediate and substantial dilution. The JCF Stockholders will retain significant control, potentially influencing corporate decisions and limiting other stockholders' protections due to 'controlled company' status. Future sales of restricted shares could cause stock price volatility. Dividend payments are intended but not assured.
**Employees:** The Reorganization involves the conversion of Class B Units into common stock or stock options, potentially providing liquidity and equity participation. The company hired 197 former Conns FTEs, integrating them into its workforce. Competitive pay, bonus opportunities, health/wellness benefits, and retirement plans are offered. The 2025 Incentive Award Plan aims to attract, motivate, and retain talent.
**Customers (Credit Originators):** The company provides liquidity through the sale of nonperforming receivables, allowing originators to focus on new loan origination. The company's strong compliance track record and comprehensive solution offering (across asset classes and geographies) are valued by clients, potentially leading to long-term partnerships and increased purchase volumes.
**Consumers (Account Holders):** The company's core competency is managing collections in strict compliance with laws and regulations, aiming to enable consumers to resolve obligations and improve financial health. The consumer-centric approach, proprietary digital platforms, and focus on fair treatment are emphasized. However, the nature of debt collection inherently involves interactions with financially distressed individuals.
**Creditors (Debt Holders):** The company's debt purchasing activities provide a mechanism for creditors to recover on nonperforming loans. The company's ability to service its substantial debt obligations is crucial for its financial stability and continued operations.

Next Steps

Complete the Initial Public Offering (IPO) and list common stock on the Nasdaq Global Select Market under the symbol JCAP.
Repay outstanding borrowings under the Revolving Credit Facility using IPO proceeds.
Utilize remaining IPO net proceeds for general corporate purposes, including funding growth, technology development, working capital, operating expenses, and capital expenditures.
Potentially acquire complementary businesses, products, services, or technologies using IPO proceeds and/or future borrowings.
Begin paying quarterly cash dividends of $X per share on common stock starting in QX 2025.
Consider future share repurchase programs to supplement dividend policy.
Continue to drive deployment growth through operating efficiencies of proprietary digital technologies.
Add new clients in core markets in the United States and Canada.
Leverage data and collection capabilities across a variety of asset classes in Canada, the United Kingdom, and Latin America.
Expand performing or semi-performing loan purchasing in the United States.
Organically enter new adjacent geographic markets in Latin America (e.g., Mexico, Chile, Panama, Costa Rica).
Potentially acquire a European platform at an attractive entry price.
Explore opportunities to enter the high street bank market in the United Kingdom.
Implement a compensation recovery (clawback) policy compliant with Nasdaq listing rules.
Adopt the 2025 Incentive Award Plan and issue stock options/restricted stock in connection with the Reorganization and IPO.

Key Dates

Date	Description
2002	Jefferson Capital founded by David Burton.
2003	Beginning of cautious investment approach for U.S. portfolios.
2005	Forward flow purchases that were resold began.
2008	Formation of Canaccede; forward flow purchases that were resold ended.
2009	Entry into the U.K. market.
2011	CFPB formed, leading to industry consolidation.
2012	Beginning of compliance requests and audits by clients and regulators (approx. 1,400 through March 31, 2025).
2013	Emblem Brand Credit Card and Payment Rewards program introduced; consistent annual revenue and net operating income growth began.
January 1, 2014	California Fair Debt Buying Practices Act applies to accounts sold after this date.
2015	First full-scope CFPB supervisory audit completed with no required changes.
September 2015	New York State Department of Financial Services debt collection regulations took effect.
2016	Canaccede entered into a large insolvency forward flow agreement; co-sourced operation in Mumbai, India engaged.
2017	John Oros joined board of directors.
March 20, 2018	Amended and restated employment agreement with David Burton.
March 23, 2018	Grant date for Class B Units to named executive officers.
August 31, 2018	Effective date of JCAP TopCo, LLC 2018 Underlying Units Plan.
2018	J.C. Flowers & Co. LLC acquired majority equity interest in Jefferson Capital business; Christopher Giles joined board of directors.
2019	Company started focusing heavily on telecom and utilities purchases in the U.K.
March 2020	Acquisition of Canaccede Financial Group (Canaccede).
February 29, 2020	Effective date of Canaccede acquisition.
November 2020	CFPB began its second supervisory audit of the company.
August 4, 2021	Jefferson Capital Holdings, LLC completed offering of $300.0 million aggregate principal amount of 6.000% senior notes due 2026.
May 21, 2021	Entered into Revolving Credit Facility.
June 2021	CFPB completed its second supervisory audit with no required changes.
2021	Entered the Colombian market; Thomas Lydon, Jr. joined board of directors.
December 28, 2021	Amendment No. 1 to Revolving Credit Facility (LIBOR to SONIA transition).
January 1, 2022	Prospective adoption of ASU 2016-02 (Leases) and ASC 326 (CECL).
February 2022	Acquisition of ResolveCall.
February 28, 2022	Amendment No. 2 to Revolving Credit Facility (added Canadian sub-facility).
December 2022	Acquired nonperforming loan assets and certain legal entities of Refinancia.
April 26, 2023	Amendment No. 3 to Revolving Credit Facility (increased commitment to $600M, extended maturity to April 26, 2028, LIBOR to SOFR transition).
April 2023	Acquisition of Moriarty Law Limited.
May 12, 2023	Company purchased remaining 10% non-controlling interest in Colombian joint venture.
July 2023	Implementation of Consumer Duty for U.K. operations.
September 29, 2023	Amendment No. 4 to Revolving Credit Facility (increased commitment to $750M, reduced Canadian sub-facility).
2023	Began purchasing in Peru and the Caribbean; launched insolvency purchasing in the U.K.; added 32 new clients.
February 2, 2024	Jefferson Capital Holdings, LLC completed offering of $400.0 million aggregate principal amount of 9.500% senior notes due 2029.
June 3, 2024	Amendment No. 5 to Revolving Credit Facility (CDOR to CORRA transition).
July 11, 2024	Dividends paid to equityholders.
July 2024	Repurchased Portfolio Interest from HH Warehouse LLC.
October 2, 2024	Jefferson Capital Systems, LLC entered into Asset Purchase Agreement with Conns, Inc.
November 10, 2024	Conns entered into a lease in San Antonio, Texas at Jefferson Capital's request.
November 12, 2024	Jefferson Capital, Inc. (the issuer in this offering) formed as a Delaware corporation.
November 13, 2024	Amendment No. 6 to Revolving Credit Facility (increased commitment to $825M, increased Canadian sub-facility).
November 15, 2024	Dividends paid to equityholders.
December 3, 2024	Conns Portfolio Purchase closed.
December 4, 2024	Hired 197 former FTEs of Conns.
December 31, 2024	U.S. consumer loan delinquency rate at 2.75% (highest since Q3 2012); charge-off rate at 2.98% (highest since Q3 2011); unemployment rate at 4.1%.
2024	Added 14 new clients.
January 1, 2025	New Canadian legislation on maximum permitted interest rate for new credit agreements effective; Jefferson Capital relocated 197 new FTEs to San Antonio facility.
March 31, 2025	Unemployment rate at 4.2%.
April 29, 2025	Repurchased units from Andrew Szemenyiei.
May 2, 2025	Jefferson Capital Holdings, LLC completed offering of $500.0 million aggregate principal amount of 8.250% senior notes due 2030.
May 5, 2025	Audit report date for Jefferson Capital, Inc. and Jefferson Capital Holdings, LLC.
May 9, 2025	Jefferson Capital Holdings, LLC paid a $16 million distribution to members.
May 15, 2030	Maturity date for 8.250% Senior Notes due 2030.

Recommendation

strong buy

Keywords

Debt Purchasing, Nonperforming Loans, Insolvency Accounts, Receivables Management, Financial Services, IPO, SEC Filing, Consumer Debt, Collections, Financial Technology, Credit Risk, Asset Management, Compliance, United States, Canada, United Kingdom, Latin America, Nasdaq

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