12th Sep 2019 14:23
(Alliance News) - Permanent TSB Group Holdings PLC on Thursday said it has agreed to sell a non performing loan portfolio to Start Mortgages DAC for EUR264 million in cash.
The portfolio, known as Glas Tranche II, will be sold to Start Mortgages in co-operation with Irish Holdings 101 DAC - both being affiliates of the Lone Star Funds. Start Mortgages will be the servicer of the Glas Tranche II Portfolio once the deal is complete.
The portfolio's gross balance sheet value is EUR306 million and its net book value is around EUR274 million. Glas Tranche II generated EUR6 million of net interest income in 2018.
The bank plans to use the EUR264 million from the Glas Tranche II sale "for general corporate purposes".
Selling the portfolio will shrink Permanent TSB's overall non performing loan ratio to about 7% from around 10%, as well as increase its common equity tier 1 ratio by approximately 30 basis points.
Shares in Permanent TSB were up 1.8% at EUR1.19 on Thursday afternoon.
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