LONDON (Alliance News) - Permanent TSB Group Holdings PLC on Tuesday said its subsidiary agreed to sell a non-performing loan portfolio to the affiliates of the Lone Star Funds.
The transaction was advised by accounting firm Ernst & Young and law firm Mason, Hayes & Curran. On completion, Permanent TSB will receive EUR1.3 billion in cash, which it intends to use for general corporate purposes.
The finance services provider said the portfolio has a gross balance sheet value of EUR2.1 billion and a net book value of EUR1.3 billion. In 2017, this loan portfolio generated operating income of EUR8 million.
Permanent TSB said the portfolio comprises of 10,700 properties with an average value of a loan in the portfolio at EUR175,000.
"Customers will continue to be afforded the protection of existing regulatory protections after the transfer," said Chief Executive Jeremy Masding.
Shares in Permanent TSB were up 6.2% at EUR2.07 on Tuesday.