Federal government agency aims to sell off $18.5 billion worth of loans from Signature Bank
The Federal Deposit Insurance Corporation (FDIC) has appointed Newmark Group as a financial advisor to help offload a $60 billion loan portfolio retained in its receivership, following the closure of Signature Bank in March.
On July 25, the FDIC announced the sale of an $18.5 billion loan portfolio from Signature Bank. The sale, however, does not involve Newmark Group, and the buyers' identities, other than Starwood Capital Group, Carlyle Group Inc., Blackstone Inc., Thoma Bravo, and Brookfield Asset Management Ltd., remain undisclosed.
Newmark Group is now working on launching a sale of Signature Bank's commercial real estate loans. The portfolio consists of 201 loans made to private equity and investing firms, offered in four pools, each consisting of whole loans, non-lead syndicated loans, and lead syndicated loans.
Eligible bidders for the loan portfolio are FDIC-insured depository institutions or commercial banks. Bidders must certify that they are not competitors of the borrowers and must comply with other terms and conditions that are yet to be disclosed.
The bid deadline for Signature's commercial real estate loans is September 12, with the closing set for October 2. It's important to note that each pool is subject to change in size and composition.
The shutdown of Signature Bank was attributed to bad management, and the majority of its assets were sold to New York Community Bank subsidiary Flagstar for $2.7 billion. Despite the sale, a timeline for the sale of Signature's commercial real estate loans isn't yet clear.
No new details about the terms or conditions of the sale of Signature's commercial real estate loans have been provided. The purchase licensing rights are not mentioned in this announcement.
As the sale process progresses, more information is expected to be released, providing clarity on the buyers and the terms of the sale of Signature Bank's commercial real estate loans.
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