Brazilian Unit of American ARM Firm Buys $305 million Debt Portfolio

ATN Capital e Participacoes Ltd., a Brazilian collection agency, announced Thursday that it has purchased a portfolio of consumer debt charged-off from Banco do Brasil SA. The portfolio has a face value of around $305 million, according to the company. A purchase price was not disclosed.

ATN is the Brazilian subsidiary of Lexicon United Inc. (OTCBB: LXUN), based in Austin, Texas. Lexicon is a financial services holding company that specializes in debt collection and recovery for financial institutions. The debt portfolio purchase announced Thursday is the first for Lexicon or ATN, according to a press release.

"This portfolio comprises past due and unpaid debt payable by more than 41,000 clients,” said Lexicon CEO Elie Saltoun in a statement. “The acquisition of this portfolio marks the first time ATN has acquired a portfolio of debt assets for its own account as differentiated from acting as a servicing agent for collections on behalf of a third party."

The purchase was made through Brazilian broker Ativos S/A Securitizadora.

Lexicon was formed in 2001 and incorporated in the state of Delaware. The company was a “blank check” public holding firm until it acquired ATN in February 2006, marking its entrance into the accounts receivable management industry.

In the first quarter of 2008, the company reported revenues of $884,865, up more than 38 percent from revenues reported in Q1 2007. The company reported a net loss in the quarter of $293,231, widened from the $175,000 it lost in the first quarter of 2007.