British bank HSBC Holdings (NYSE:HSBC) has agreed to sell a portfolio of U.S. mortgages and unsecured loans held by its subsidiary HSBC Finance, the company announced today.
The buyer of the loans is SpringCastle Acquisition, a Delaware-based company owned by Springleaf Finance and Newcastle Investment (NYSE:NCT). Springleaf is also buying the HSBC Finance loan servicing facility and other assets in London, Ky. The total payment from SpringCastle and Springleaf is $3.2 billion in cash.
Most of the HSBC employees at the Kentucky facility will become employees of Springleaf when the transaction is completed in the fourth quarter of 2013, the company said.
"These agreements accelerate the run-off of the legacy consumer mortgage and lending business and are a continuation of HSBC's strategy to reposition its U.S. operations," said Patrick Burke, CEO of HSBC Finance.