Colonial BancGroup (CNB) Sells Nevada Branches To Global Consumer Acquisition Corp (GHC)
The Colonial BancGroup, Inc. (NYSE: CNB) entered into an asset purchase agreement with Global Consumer Acquisition Corporation (GCAC) (NYSE: GHC) for the sale of 21 branch offices of Colonial Bank located in Nevada.
Upon the closing of the transaction, GCAC is expected to acquire the branch network including approximately $492 million in deposits and approximately $440 million in loans, of which approximately $326 million were originated in the Nevada franchise. The deposit premium is $28 million or 9.33% based on a balance of $300 million of non-time deposits. If non-time deposits exceed $310 million, the deposit premium will be increased by 9.33% of the amount that the non-time deposits exceed $310 million. If non-time deposits are less than $290 million, the deposit premium will be decreased by 9.33% of the amount that the non-time deposits are less than $290 million. At June 30, 2009, the non-time deposits were approximately $305 million. As of June 30, 2009, approximately $565 million of loans and $399 million of time deposits that were originated in the Nevada franchise are expected to be retained by Colonial.
Upon the closing of the transaction, GCAC is expected to acquire the branch network including approximately $492 million in deposits and approximately $440 million in loans, of which approximately $326 million were originated in the Nevada franchise. The deposit premium is $28 million or 9.33% based on a balance of $300 million of non-time deposits. If non-time deposits exceed $310 million, the deposit premium will be increased by 9.33% of the amount that the non-time deposits exceed $310 million. If non-time deposits are less than $290 million, the deposit premium will be decreased by 9.33% of the amount that the non-time deposits are less than $290 million. At June 30, 2009, the non-time deposits were approximately $305 million. As of June 30, 2009, approximately $565 million of loans and $399 million of time deposits that were originated in the Nevada franchise are expected to be retained by Colonial.
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