GE To Sell UK Home Lending Portfolio to Blackstone, TSSP and CarVal
November 23 2015 - 7:07AM
Business Wire
Transaction Substantially Completes Exit of
US$13 Billion UK Home Lending Portfolio
GE (NYSE:GE) has signed an agreement to sell a portfolio of
first lien mortgage loans from its UK Home Lending business,
representing aggregate ending net investment (ENI) of approximately
US$5.8 billion, to an investment consortium made up of
opportunistic funds managed by Blackstone, TPG Special Situations
Partners (TSSP), and CarVal Investors. The loans have a face value,
or customer servicing balance of US$5.9/£3.8 billion. The
transaction is expected to close in December 2015; terms were not
disclosed.
“This transaction represents the sale of almost all our
remaining UK mortgage business, which successfully provided
financing for UK home owners,” said Keith Sherin, GE Capital
chairman and CEO. “We began this year with around US$13 billion of
ENI and when this transaction closes, we will have approximately
US$0.4 billion of ENI remaining in our UK mortgage business. This
is an important step as we continue to execute on our plan to sell
most of the assets of GE Capital.”
As previously announced, GE is embarking on a strategy to focus
on its high-value industrial businesses and is selling most GE
Capital assets. GE and its Board of Directors have determined that
current market conditions are favorable to pursue disposition of
these assets. GE will retain the financing verticals that relate to
GE’s industrial businesses.
When completed, this transaction will contribute approximately
US$0.4 billion of capital to the overall target of approximately
US$35 billion of dividends expected to be paid to GE under this
plan (subject to regulatory approval). In total, the combined sales
of the UK Home Lending portfolios, including this transaction, will
contribute nearly US$1 billion of capital to the target. With the
transaction, the total ENI for 2015 announced sales is about US$136
billion.
“We are pleased with the progress we are making to reach and
close agreements for our businesses and assets. The speed and value
we have achieved is a testament to the hard work of our GE Capital
teams around the world,” concluded Sherin.
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version on businesswire.com: http://www.businesswire.com/news/home/20151123005584/en/
GE:Investors:Matt
Cribbins, +1 203 373 2424matthewg.cribbins@ge.comorMedia:GE
Capital:Susan Bishop, +1 203 750 5362susan.bishop@ge.comorGE:Seth
Martin, +1 203 572 3567seth.martin@ge.comorBlackstone:Andrew Dowler, +44 (0)20 7451
4275andrew.dowler@blackstone.comorTPG:Luke Barrett, +1 212 601
4752lbarrett@tpg.comorCarVal:Ann Folkman, +1 952 984
3919ann.folkman@carval.com
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