EDEN PRAIRIE, Minn.--(BUSINESS WIRE)--Bluestem Group Inc. (OTCMKTS: BGRP) today reaffirmed the contractual relationship between its subsidiary Bluestem Brands, Inc. (“Bluestem”) and Santander Consumer USA (SC, NYSE: SC), following SC’s announcement today that it has reclassified its entire personal loan portfolio as “held for sale.”
The term of the program agreements for the forward purchase of revolving receivables by SC and servicing of receivables by Bluestem extends into 2020, and SC will continue to acquire newly originated revolving receivables in accordance with terms of the existing agreements. Bluestem may, in its sole discretion, extend the term of its receivables purchase agreement with SC through April 19, 2022, and the agreement automatically renews for additional two-year terms thereafter unless terminated by either party. Bluestem maintains consent rights over any transfer by SC of SC’s forward purchase obligation. The agreement is not subject to termination, except following mutual agreement or for certain customary events of default.
As previously disclosed, Bluestem has identified as a strategic priority the diversification of its sources of funding, including the consideration of alternative structures and third-party relationships. As part of that process, Bluestem will coordinate with SC as SC evaluates alternatives for the consumer receivables currently held on its balance sheet.
“We will continue to perform in accordance with the terms and operative provisions under the agreement,” said Jason Kulas, Santander Consumer USA’s Chief Executive Officer. “We will coordinate with Bluestem as we evaluate alternatives for the consumer receivables on the SC balance sheet.”
“Our relationship with SC remains strong and we see no impact to our business or change in our operating model,” said Mark Wagener, Bluestem’s Chief Financial Officer. “We will be assisting SC with its consumer receivables sale process and are continuing to pursue relationships with third parties as part of our ongoing strategy to diversify our funding sources.”
Teleconference Information
Management will host a teleconference to discuss this announcement today, October 29, 2015, at 4:30 PM ET. The conference call can be accessed at (877) 419-6594 or (719) 325-4744 (International). The call will also be broadcast simultaneously at http://www.bluestem.com/investor-relations. Following completion of the call, a recorded replay of the webcast will be available on Bluestem Group’s website. To listen to the telephone replay, call toll-free (877) 870-5176 or (858) 384-5517 (International), replay pin # 295421. The telephone replay will be available at 7:30 PM ET October 29, 2015. Additional investor information can be accessed at http://www.bluestem.com/investor-relations.
About Bluestem Group Inc.
Bluestem Group Inc. is a holding company whose businesses include Bluestem Brands, a multi-brand, online retailer of a broad selection of name-brand and private label general merchandise serving low- to middle-income consumers through 16 retail brands that include: Appleseed’s, Bedford Fair, Blair, Draper’s & Damon’s, Fingerhut, Gettington, Gold Violin, Haband, LinenSource, Norm Thompson, Old Pueblo Traders, PayCheck Direct, Sahalie, Solutions, Tog Shop and Wintersilks. Complementing each brand is a large selection of merchandise with payment options that provide customers with the flexibility of paying over time. Bluestem Group is headquartered in Eden Prairie, MN. For additional information visit the Bluestem Group website at www.bluestem.com.
Forward-Looking Statements
This release contains statements that are “forward-looking statements.” Forward-looking statements relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and similar expressions concerning matters that are not historical facts. All statements contained herein that are not clearly historical in nature are forward-looking. In some cases, you can identify these statements by use of forward-looking words such as “may,” “will,” “should,” “anticipate,” “estimate,” “expect,” “plan,” “believe,” “predict,” “potential,” “project,” “intend,” “could” or similar expressions. In particular, statements regarding Bluestem Group’s or its subsidiaries’ plans, strategies, prospects and expectations regarding its business are forward-looking statements. You should be aware that these statements and any other forward-looking statements in this document only reflect Bluestem Group’s beliefs, assumptions and expectations and are not guarantees of performance. These statements involve risks, uncertainties and assumptions. Many of these risks, uncertainties and assumptions are beyond Bluestem Group’s control and may cause actual results and performance to differ materially from Bluestem Group’s expectations.
Forward-looking statements are based on Bluestem Group’s beliefs, assumptions and expectations of its future performance and actions, taking into account all information currently available to Bluestem Group. These beliefs, assumptions and expectations can change as a result of many possible events or factors, not all of which are known to Bluestem Group or are within its control. If a change occurs, Bluestem Group’s and its subsidiaries’ plans, business, financial condition, and liquidity may vary materially from those expressed in its forward-looking statements. Important factors that could cause the actual results to be materially different from Bluestem Group’s expectations include the risks and uncertainties set forth in “Risk Factors” in Bluestem Group’s Report as of and for the fiscal years ended January 30, 2015 and January 31, 2014, as supplemented by Bluestem Group’s subsequent quarterly reports.
Accordingly, you should not place undue reliance on the forward-looking statements contained in this release. These forward-looking statements are made only as of the date of this release. Bluestem Group undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise.