NYSE Euronext and TRE to jointly market corporate receivables program to NYSE listed issuers and other companies
NYSE Euronext and The Receivables Exchange to jointly market corporate receivables program to NYSE listed issuers and other companies
NYSE Euronext (NYSE) and The Receivables Exchange (TRE), the leading online marketplace for U.S. receivables sales, today announced the launch of a joint strategic initiative to market TRE's Corporate Receivables Program (CRP) to potential sellers, including New York Stock Exchange listed companies. Under terms of the arrangement, the NYSE has acquired a minority ownership position in TRE. Terms of the investment were not disclosed.
TRE's CRP is the world's first electronic marketplace for the standardized purchase and sale of corporate accounts receivable. Through an innovative auction model, TRE provides an efficient and transparent way for corporations to monetize receivables. CRP gives companies increased flexibility in managing working capital via receivables sales, access to diverse funding sources without adding leverage, off-balance sheet benefits, reduced complexity and time to market, and competitive cost of capital. The process lowers Days Sales Outstanding (DSOs) to as little as one day and allows companies to tap into the $17 trillion U.S. accounts receivable market.
NYSE Euronext also announced the appointment of Paul DeDomenico as Head of Global Corporate Receivables Programs. DeDomenico is the former CEO of GE Capital - Working Capital Solutions and as a 23-year veteran of GE Capital has extensive commercial finance background in accounts receivable financing and factoring, leasing, and asset backed lending. Among other accomplishments, he developed and grew GE's global accounts receivable financing and servicing platform, Working Capital Solutions, from start up phase to $10 billion of assets.
"Our alliance with TRE adds to our growing portfolio of issuer services and provides our listed companies affordable and continuous access to working capital," said Scott Cutler, NYSE Euronext Executive Vice President and Head, NYSE Listings "We believe that our issuer community will benefit from the technological elegance, practicality and business advantages of the CRP program, and we are proud to partner with TRE on this initiative; a unique capital efficient mechanism which is especially important during this time of market uncertainty and reduced access to credit facilities. We are also pleased to welcome Paul DeDomenico to NYSE Euronext. Paul's expertise in asset based lending and capital markets within the global trade flow and accounts receivables industry and his successful track record of delivering working capital financing solutions to medium and large corporate customers, make him the ideal individual to lead NYSE Euronext's CRP initiative."
"This strategic initiative with NYSE Euronext is a significant milestone for TRE," said TRE Co-Founders Justin Brownhill, CEO, and Nic Perkin, President. "CRP provides an efficient and cost-effective way for NYSE listed and other companies to leverage receivables for liquidity and balance sheet management and to improve return on assets and equity. By embarking on this bold initiative with us, NYSE has affirmed its confidence in the value of TRE's game-changing business model and marketplace. We are very proud to be a partner of NYSE Euronext."
TRE is a category creator and market leader for bringing affordable and needed capital to the $11 trillion U.S. small and medium business (SMB) market. Receivables constitute the majority of working capital for SMBs, which support 65 percent of U.S. private sector employees and 42 percent of business revenue. Since going live in 2008, TRE's proposition has been instrumental in assisting with their capital needs, growth and job creation. TRE recently launched CRP after a successful pilot test with a Fortune 10 corporation in order to meet increasing large company demand for this service.
Live Webcast with Paul DeDomenico, Head of Global Corporate Receivables Programs, NYSE Euronext and The Receivables Exchange (TRE) Co-Founders Justin Brownhill, CEO, and Nic Perkin, President to take place from 1:00 - 1:30 p.m. ET .Webcastavailable at: http://www.thomson-webcast.net/us/dispatching/?event_id=5c25975db58ccff70cbd578342683ced&portal_id=98f1bf0c64b9668b7ef260bc00ff84b8