27 Oct - Permanent TSB completes sale of CHL loan book
Jeremy Masding – This is a “milestone” deal which completes the deleveraging programme set out in Restructuring Plan and allows the Group concentrate on the Irish Retail and SME banking market.
Thursday 27th October 2016.Permanent TSB has agreed the sale ofits remaining loan book in the UK. The deal completes the deleveraging programme which was a core condition of the Restructuring Plan agreed for the Group by the European Commission.
Under the transaction, the Group is selling GBP£2.29billion of loans to an affiliate of Cerberus Capital Management, L.P.; a year ago a Cerberus affiliate acquired circa 50% of the CHL Loan Portfolio and the associated legal entity, Capital Home Loans Ltd.Theloan assets in the deal announced today comprise the total balance of the residual book of the Group’s former UK subsidiary, Capital Home Loans Limited. Permanent TSB Group Holdings was advised by Morgan Stanley & Co International plc. The gross proceeds for the sale are circa GBP£1.95 billion. Consideration is in the form of a cash settlement and sales proceeds will be used to reduce PTSB Group’s borrowings.
Speaking today, Jeremy Masding, Group Chief Executive, said; “This transaction is a milestone event for the Group. Its completion in the coming weeks will conclude the very ambitous deleveraging programme of some €8.4 billion which was set out for the Group under the Restructuring Plan agreed with the European authorities.
Perhaps most importantly, it will complete our pivot to the Irish retail marketplace and allow us to focus exclusively on growing our commercial position in key segements of the market here. That is now our overriding priority, as Ireland’s only pure domestic Retail and SME bank.”
ptsb@gordonmrm.ie