- Increased focus on attracting foreign companies with U.S. subsidiaries -
New York - June 26, 2013 - NYSE Euronext (NYX) and The Receivables Exchange (TRE), the leading online marketplace for U.S. receivables sales, today announced the renewal of their strategic alliance to market TRE's Corporate Receivables Program (CRP) to potential accounts receivable sellers, including New York Stock Exchange-listed companies. This comes as CRP surpasses $1 billion of corporate accounts receivables sold on the platform, reflecting the value for companies of having access to cost competitive capital through diverse sources of liquidity.
TRE's CRP is an electronic marketplace for the standardized purchase and sale of corporate accounts receivable. TRE's innovative auction model allows companies to sell their accounts receivable in an efficient, flexible and transparent way by accessing diversified funding through an expanded buyer marketplace.
NYSE Euronext and TRE partnered in September 2011 to jointly market CRP to private companies and publicly-held companies. Under the terms of the renewed arrangement, NYSE Euronext will retain its minority interest in TRE. Terms of the investment were not disclosed.
"We are delighted with the success of the Corporate Receivables Program, which in less than two years has reached $1 billion in sales on the platform and continues to attract new clients, including NYSE-listed companies," said Paul DeDomenico, NYSE Euronext Head of Global Corporate Receivables Programs . "The next phase of CRP's growth strategy will include an increased focus on attracting multinational companies based in Europe and Brazil seeking accounts receivables solutions for their U.S. subsidiaries. Longer term, we plan to launch a similar program in Europe with a focus on adding Euro and Pound Sterling currencies."
"We are proud to have a partner in NYSE Euronext and are excited about the next stage of growth for CRP," said The Receivables Exchange CEO Henry (Hank) Allen. "The program is an innovative solution for companies wanting affordable and continuous access to working capital. Our clients come from a wide range of industries and geographies and typically have annual revenues ranging from $5 billion to $120 billion. The program is also attractive to banks and institutional buyers that need access to large corporate credit with attractive, risk-adjusted returns and favorable duration. TRE's recent $10 million growth round financing reflects investor confidence in the program."
For more information about the partnership, see September 2011 press release.
About The Receivables Exchange
The Receivables Exchange is the online exchange for the sale and purchase of accounts receivable. In association with NYSE Euronext, The Receivables Exchange's Corporate Receivables Program enables large private and publicly traded companies to leverage access to cost competitive capital by connecting them to diversified sources of liquidity, including community/regional/international banks, large family offices, hedge funds, pension funds, and other institutional buyers. Transactions over the exchange are classified as a "true sale" thus offering balance sheet benefits and improved credit risk management to large corporate sellers and attractive, enhanced returns to buyers. Visit www.receivablesxchange.com for more information. For more information, see www.receivablesXchange.com.
About NYSE Euronext
NYSE Euronext (NYX) is a leading global operator of financial markets and provider of innovative trading technologies. The company's exchanges in Europe and the United States trade equities, futures, options, fixed-income and exchange-traded products. With approximately 8,000 listed issues (excluding European Structured Products), NYSE Euronext's equities markets - the New York Stock Exchange, NYSE Euronext, NYSE MKT, NYSE Alternext and NYSE Arca - represent one-third of the world's equities trading, the most liquidity of any global exchange group. NYSE Euronext also operates NYSE Liffe, one of the leading European derivatives businesses and the world's second-largest derivatives business by value of trading. The company offers comprehensive commercial technology, connectivity and market data products and services through NYSE Technologies. NYSE Euronext is in the S&P 500 index. For more information, please visit: http://www.nyx.com.