HSBC Holdings Plc said it agreed to sell a U.S. subsidiary's personal unsecured loan and personal homeowner loan portfolios to SpringCastle Acquisition LLC and Newcastle Investment Corp.
The subsidiary, HSBC Finance Corp, also said it agreed to sell its loan servicing facility and related assets in London, Kentucky to Springleaf Finance Inc.
Continue Reading Below
The total consideration to be paid by SpringCastle and its parent, Springleaf, is $3.2 billion in cash.
"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 and focus on the core businesses supporting our aim to be the world's leading international bank," Patrick Burke, CEO, HSBC Finance Corp said in a statement.
(Reporting by Karen Rebelo in Bangalore; Editing by Supriya Kurane)