MCLEAN, Va., Aug. 11, 2015 /PRNewswire/ -- Capital One
Financial Corporation (NYSE: COF) announced today the signing of a
definitive agreement with General Electric Capital Corporation to
acquire approximately $8.5 billion of
healthcare-related loans and its Healthcare Financial Services
business, one of the leading capital providers in the U.S.
healthcare market, for a 6 percent premium to par value of all
receivables as of June 30, 2015.
Capital One expects this acquisition to provide a strong platform
for future growth and returns. Capital One does not expect this
acquisition to impact its approved capital distribution plan
described in the company's report on Form 10-Q for the quarterly
period ended June 30, 2015. The
company expects to complete the acquisition in the fourth quarter
of 2015.
GE Capital, Healthcare Financial Services provides customized
financing solutions that help support and grow healthcare
organizations, providing financing to companies in various
healthcare sectors, including healthcare services, seniors housing,
hospitals, medical offices, pharmaceuticals, and medical
devices.
Darren Alcus, President of GE
Capital, Healthcare Financial Services, will become the President
of Capital One's healthcare finance business. The acquisition of GE
Capital, Healthcare Financial Services and the addition of the
experienced management team will add to Capital One's already
strong healthcare lending business and create a leading healthcare
banking platform. Capital One will benefit from GE Capital,
Healthcare Financial Services' broad customer base and expert risk
management platform as it brings to the new unit the resources of a
top 10 U.S. bank, including a more complete suite of lending and
depository products, as well as treasury management services.
"This is a strategic investment in a specialty industry segment
that we have been building out for the past several years. This
addition will catapult us to a leading market position in providing
financial services to the healthcare sector," said Michael Slocum, President of Capital One's
Commercial Bank. "The GE Capital, Healthcare Financial Services
team shares our commitment to providing value-added advice and
creative financing solutions to the healthcare industry. Together
we will deliver a powerful combination of industry-leading
expertise and expanded capabilities to our clients."
"We are excited to join forces with the healthcare finance
professionals at Capital One – they share our vision for providing
the financial solutions that this complex industry demands," said
Alcus. "The healthcare sector offers tremendous potential for
growth, and I am confident that together we will offer the
best-in-class expertise and tailored financial products that meet
the needs of healthcare businesses across the country."
Credit Suisse and Wells Fargo Securities acted as exclusive
financial advisors to Capital One, and Wachtell, Lipton, Rosen
& Katz acted as legal advisor to Capital One.
Forward Looking Statements
Certain statements in this release are forward-looking
statements, which involve a number of risks and uncertainties.
Capital One cautions readers that any forward-looking information
is not a guarantee of future performance and that actual results
could differ materially from those contained in the forward-looking
information due to a number of factors, including those listed from
time to time in reports that Capital One files with the Securities
and Exchange Commission, including, but not limited to, the Annual
Report on Form 10-K for the year ended December 31, 2014.
About Capital One
Capital One Financial Corporation (www.capitalone.com) is a
financial holding company whose subsidiaries, which include Capital
One, N.A., and Capital One Bank (USA), N.A., had $208.8
billion in deposits and $310.5
billion in total assets as of June 30, 2015.
Headquartered in McLean, Virginia,
Capital One offers a broad spectrum of financial products and
services to consumers, small businesses and commercial clients
through a variety of channels. Capital One, N.A. has branches
located primarily in New York,
New Jersey, Texas, Louisiana, Maryland, Virginia and the District of Columbia. A Fortune 500 company,
Capital One trades on the New York Stock Exchange under the symbol
"COF" and is included in the S&P 100 index.
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SOURCE Capital One Financial Corporation