The banking division of PNC Financial Services (PNC.N) announced on Tuesday that it had agreed with the Federal Deposit Insurance Corp, acting as receiver, to purchase a portfolio of capital commitments from Signature Bridge Bank valued at $16.6 billion.
The portfolio contains $9 billion in funded loans and consists of fund subscription credit lines provided to private equity companies to help manage liquidity and bridge project funding.
According to a statement from the bank, “PNC has long been involved in the capital commitments business and the acquired portfolio is highly complementary.”
Over the past ten years, private real estate investment firms and PE have become increasingly interested in credit vehicles.
The deal, financed with cash on hand, is anticipated to boost PNC’s profits immediately and will account for around 10 cents per share in the fourth quarter of 2023, according to PNC Bank.
According to the corporation, PNC Bank acquired these pledges and loans independently of any financing, FDIC guarantees, or loss-sharing arrangements.
Amid a worsening regional banking crisis, the FDIC shuttered Signature Bank in March and transferred all its deposits and assets to Signature Bridge Bank, a full-service financial institution run by a board the regulator chose.
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