GE Capital to sell bulk of U.S. restaurant franchise loan portfolio
(Reuters) - General Electric Co (GE.N: Quote) said it would sell a bulk of GE Capital's U.S. restaurant franchise loan portfolio to three regional banks in separate deals as the industrial conglomerate winds down its financing arm to reduce regulatory burden.
GE said on Monday the deals represent ending net investment of about $1.4 billion as of the first quarter and are expected to release about $200 million of capital for the company.
The company did not give further financial details.
GE said it would retain the financing verticals related to its industrial businesses and sell the restaurant franchise financing assets to First Horizon National Corp FHN.N, Wintrust Financial Corp (WTFC.O: Quote) and Sterling Bancorp (STL.N: Quote).
The sale is part of GE's plan to sell about $200 billion of GE Capital's businesses largely by the end of this year as it switches focus back to its industrial roots.
GE said it had signed GE Capital deals worth about $180 billion so far and that GE Capital expects to deliver about $35 billion of dividends to the company under the plan.
The three banks will acquire assets based on the location of the regional headquarters of the borrowers, GE said.
Tennessee-based First Horizon said it would acquire about $637 million in GE Capital's restaurant franchise loans in the Southeast and Southwest regions.
Illinois-based Wintrust Financial said it would acquire about $581 million in loans from borrowers in the Midwest and in the western United States. Continued...