J.P. Morgan & Co. is syndicating a $2.5 billion bridge loan for OakStone Financial Corp., the new name given to the credit-card operations of Signet Banking Corp.
As reported, Signet said Wednesday that it would spin off nearly 20% of its creditcard business through an initial public offering, expected to be completed by early fall.
The Rest to Stockholders
The remaining shares would then be distributed to Signet shareholders.
The one-year bridge loan will provide interim funding for OakStone. Morgan committed $500 million of the total amount. Morgan's securities subsisidiary is also one of three lead underwriters of the IPO.
