DFC Global (DLLR)

Diversified Financials

DLLR is a non-bank provider of unsecured consumer loans which is moving away from Single Payment Loans (aka Pay-day Loans) and focusing on installment loans to lessen regulatory risk. The Company is actively seeking the sale of its international business which according to some estimates could sell for as much as $450 million. We expect proceeds to be used to delever as well as fund installment loan growth potentially providing a tailwind in the US after years of underinvestment.