J.G. Wentworth Parent Falls After IPO Prices Below Reduced Range

JGWPT Holdings Inc. (JGW), the firm that offers cash for settlements under the J.G. Wentworth brand, fell in its debut after pricing a decreased number of shares below a reduced range in its U.S. initial public offering.

The company raised $136.5 million, selling 9.75 million Class A shares for $14 each, according to a company statement today. JGWPT lowered the price range to $15 to $16 apiece before the offering, from $19 to $22 initially, and cut the number of shares from 12.2 million. The stock fell almost 7 percent to $13.03 at 1:07 p.m. in New York. JGWPT is listed on the New York Stock Exchange under the symbol JGW.

Through its J.G. Wentworth and Peachtree brands, JGWPT purchases future payments owed to customers for settlements from events such as personal injury claims and lottery winnings in exchange for cash. The Radnor, Pennsylvania-based company securitizes the settlements and sells them to investors. During the financial crisis, the company was unable to find buyers for its asset-backed securities, which caused it to miss an interest payment and file for Chapter 11 bankruptcy protection in 2009.

Since 1995, the company has invested about $585 million in marketing, the company said in its prospectus. It’s known for the TV commercial with the tag line “It’s my money and I need it now.”

JGWPT’s revenue increased 85 percent to $467 million last year, due to the merger with Peachtree and a lower interest rate environment, the prospectus shows. The company reported net income of $116.7 million last year, compared with a loss of $3.9 million in 2011. Barclays Plc and Credit Suisse Group AG managed the offering.

To contact the reporter on this story: Leslie Picker in New York at lpicker2@bloomberg.net

To contact the editor responsible for this story: Jeffrey McCracken at jmccracken3@bloomberg.net

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