Deals
U.K. Sells Off $19.8 Billion of Northern Rock Mortgages
- U.S. private-equity firm won six-month bidding process
- Sabadell's TSB to acquire 3.3 billion pounds of mortgages
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Cerberus Capital Management LP agreed to buy 13 billion pounds ($19.8 billion) of mortgages the British government has owned since the financial crisis, beating out Goldman Sachs Group Inc. and JPMorgan Chase & Co. for the remnants of Northern Rock Plc.
The U.S. private-equity firm won a six-month bidding process for the home loans, UK Asset Resolution Ltd. said in a statement Friday. Proceeds of the sale, which will help UKAR repay 5.5 billion pounds to the state, included a premium of about 280 million pounds over book value. Cerberus immediately sold 3.3 billion pounds of loans from the so-called Granite securitization portfolio to TSB Banking Group Plc.