Reed Smith LLP Advised Bluestem Brands In $488 Million Face Value Sale Of Credit Card Portfolio

Reed Smith LLP advised Bluestem Brands in $488 million face value sale of credit card portfolio

Reed Smith LLP recently represented BLST TopCo, LLC (Bluestem Brands) in a definitive asset purchase agreement under which affiliates of the company will sell a portfolio of credit card assets to a wholly owned subsidiary of Jefferson Capital, Inc. (NASDAQ: JCAP), a purchaser and manager of charged-off and insolvency consumer accounts.

As part of the transaction, Bluestem Brands will sell a revolving loan portfolio with a face value of approximately $488.2 million to Jefferson Capital for a gross purchase price of $302.8 million. At closing, the gross purchase price will be adjusted to reflect interim portfolio cash flows. The sale does not include any of Bluestem Brands’ retail operations or assets.

The deal is expected to close in the fourth quarter of 2025, subject to customary regulatory approvals.

The two companies will also enter into an interim servicing agreement to facilitate the orderly transition of servicing responsibilities to CardWorks Servicing, LLC, which is expected to assume full servicing of the portfolio by the end of February 2026.

The Reed Smith LLP team was led by Bradly S. Schmarak (Partner) and Jennifer Riso (Partner) with Crockett Stevenson (Associate).

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