GE To Sell U.S. Restaurant Finance Assets In Separate Deals To Three Buyers

(RTTNews) - General Electric Co. (GE) said that it has entered into separate agreements with three buyers to sell the bulk of GE Capital's U.S. restaurant franchise financing assets. The combined transactions represent ending net investment (ENI) of about US$1.4 billion as of first quarter 2016 and are collectively expected to release approximately US$0.2 billion of capital to GE. Further details on the transaction terms are not being disclosed.

The transactions are expected to close in the third quarter this year.

Under these agreements, each buyer will acquire assets based on the regional headquarters location of the respective Borrowers.

First Horizon National Corporation, a Tennessee-based bank with assets of approximately $27 billion, will acquire assets in the Southwest and Southeast.

Wintrust Financial Corporation, an Illinois-based bank with approximately $23 billion in assets, will acquire assets in the Midwest and part of the West.

Sterling National Bank, which is headquartered in New York and has approximately $13 billion in assets, will acquire assets in the East. The remainder of assets in the West will be sold separately.