WASHINGTON – The FDIC said Friday it sold a portfolio of 1,200 commercial loans to Colony Capital LLC of Santa Monica for $1.02 billion at a steep discount.
Under the deal, the FDIC will retain a 60% share in a new fund to manage the loans and will provide $233 million of notes to finance the loan sale. As the LLC's managing equity owner, Colony Capital, a unit of Colony Financial, is paying about $90.5 million, excluding working capital and transaction costs, for its stake and will provide for the management, servicing and ultimate disposition of the assets.
The FDIC acquired the loans when it closed 22 failed banks and sold their assets. It said about 75% of the properties that secure the loans are in Georgia, California, Nevada and Florida.
The banking regulator also said it seized Horizon Bank, a $1.1 billion Bellingham, Wash., institution on Friday, and assigned the assets of the first bank failure of the year to Seattle’s Washington Federal S&L.
