GE Strikes Deals to Sell Most of U.S. Restaurant Finance Assets
June 27 2016 - 6:50PM
Dow Jones News
General Electric Co. has struck three different deals to sell
the bulk of its U.S. restaurant finance assets, the latest deal in
its broader strategic move to focus on its industrial
businesses.
The sale would represent an ending net investment of about $1.4
billion at March 31, GE said.
Under the deals announced Monday, Tennessee-based First Horizon
National Corp. would acquire about $637 million of restaurant
franchise loans in the Southwest and Southeast, Illinois-based
Wintrust Financial Corp. would acquire about $581 million in assets
in the Midwest and part of the West, and New York-based Sterling
National Bank would acquire the roughly $190 million Eastern U.S.
restaurant franchise financing loan portfolio.
The deals are expected to close in the third quarter. The
companies didn't disclose additional terms.
The rest of GE Capital's Western portfolio is to be sold
separately, GE said.
Since GE announced plans last year to sell off about $200
billion of GE Capital, what was then a $500 billion lending
business, it has signed agreements for about $180 billion and
completed about $156 billion of those. The company, which expects
to complete the process by the end of the year, said the breakup
would ultimately allow it to send about $35 billion in dividends
from GE Capital to the corporate parent, subject to regulatory
approval.
Shares, down 6% this year, edged down 7 cents to $29.25 in
after-hours trading.
Write to Maria Armental at maria.armental@wsj.com
(END) Dow Jones Newswires
June 27, 2016 18:35 ET (22:35 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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