General Electric (GE) has completed the sale of GE Capital’s commercial lending and leasing portfolios in Australia and New Zealand (A&NZ) to Bain Capital Credit.
The deal was advised and partially financed by Deutsche Bank.
The transaction includes about US$1.2/A$1.6 billion in ending net investment (ENI). Terms of the transaction were not disclosed.
“We continue to make very good progress in reducing the size of GE Capital,” said Keith Sherin, GE Capital chairman and CEO (pictured above).
As previously announced in Asset Finance International, GE is focusing on its high-value industrial businesses and is selling most GE Capital assets. GE will retain the financing verticals that relate directly to GE’s industrial businesses.
Since announcing this strategic change, GE Capital has signed agreements for approximately $166 billion of the $200 billion in ENI that it plans to sell. The total closed transactions to date are now approximately $150 billion in ENI.
Today’s transaction will contribute approximately US$0.1 billion of capital to the overall target of approximately US$35 billion of dividends expected to be paid to GE under the disposition plan (subject to regulatory approval).
Sankaty Advisors is the global credit affiliate of Bain Capital and one of the world’s leading private managers of fixed income and credit instruments. Founded in 1998 and now managing more than $26 billion of assets, Sankaty has an integrated team of more than 230 people that enables the firm to invest up and down the capital structure and to conduct rigorous, independent analysis of thousands of corporate issuers. Sankaty invests in a wide variety of securities and investments globally, including leveraged loans, high-yield bonds, distressed and stressed debt, mezzanine debt, structured products, real estate and equities.
An employee-owned private partnership, the firm has offices in Boston, New York, Chicago, London, Luxembourg, Dublin, Hong Kong and Melbourne. Sankaty Advisors is registered with the Securities and Exchange Commission and Sankaty Advisors, Ltd, is authorised and regulated by the Financial Conduct Authority.