HSBC Finance Corporation (HFC), an indirect wholly-owned subsidiary of HSBC Holdings, has agreed to dispose of its unsecured and personal homeowner loan portfolios to SpringCastle Acquisition.
SpringCastle is a Delaware-based company managed collectively by Springleaf Finance and Newcastle Investment.
The Asia-focused lender said that the sale of loan portfolios is likely to conclude in the second quarter of 2013, pending receipt of regulatory approvals and satisfying customary closing conditions.
Commenting on the agreement, HSBC Finance Corporation CEO Patrick Burke said that the disposal of loan portfolios is part of the lender’s plan to strengthen its businesses in the US and concentrate on core businesses globally.
Additionally, HFC has also signed a deal with Springleaf to offload its loan servicing facility and related assets in London, Kentucky.
Based on the terms of the transaction, majority of the staff working at the facility will be transferred and will become employees of Springleaf.
Expected to conclude during the fourth quarter of 2013, the transaction pertaining to the completion of the sale of the building and assets, is also subject to customary closing conditions.
SpringCastle and Springleaf will pay the total purchasing price of $3.2bn in cash, for both the deals.