P. M. BRIEFING : Primerica to Buy Barclays Unit
<i> From Times Wire Services</i>
NEW YORK —
Financial giant Primerica Corp. has agreed to buy the loan portfolio of the U.S. consumer-lending unit of Britain’s Barclays Bank PLC in a cash deal valued at $1.35 billion, both companies announced today.
Under the agreement, Primerica’s lending subsidiary, Commercial Credit Co., will buy assets worth $1.30 billion of BarclaysAmerican-Financial, a unit of BarclaysAmericanCorporation, which is the U.S. subsidiary of Barclay’s.
The sale price, therefore, represents a $50-million premium over the total value of the loan portfolio.
Barclays said it will retain the equity in the company, which has a book value of around $100 million.
The acquisition is subject to regulatory approval.
