Citi (C) Having Trouble Selling OneMain Financial Unit
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Citigroup (NYSE: C) is facing some headwinds in attempts to dispose of its OneMain Financial unit, the Financial Times reported Friday.
Though Citi has been trying to offload the unit for months, potential buyers have been mulling over how much debt OneMain would need to raise, as well as how much funding Citi would commit to the deal. The three remaining groups interested in the unit are still waiting on reviews by credit agencies.
Main factors being considered by buyers: if loans will be able to be securitized, and at what rating.
Potential bidders for the unit include a group containing Blackstone (NYSE: BX), Carlyle, and Brysam Global Partners, a group led by Centerbridge Capital Partners, and finally a group containing Apollo Management and JC Flowers.
Reuters notes Citi is looking to off the unit without taking any losses, and expects bids for no less that its book value of $2 billion.
OneMain Financial, formerly known as CitiFinancial, is Citi's U.S. consumer finance company with about $13 billion of assets.
Though Citi has been trying to offload the unit for months, potential buyers have been mulling over how much debt OneMain would need to raise, as well as how much funding Citi would commit to the deal. The three remaining groups interested in the unit are still waiting on reviews by credit agencies.
Main factors being considered by buyers: if loans will be able to be securitized, and at what rating.
Potential bidders for the unit include a group containing Blackstone (NYSE: BX), Carlyle, and Brysam Global Partners, a group led by Centerbridge Capital Partners, and finally a group containing Apollo Management and JC Flowers.
Reuters notes Citi is looking to off the unit without taking any losses, and expects bids for no less that its book value of $2 billion.
OneMain Financial, formerly known as CitiFinancial, is Citi's U.S. consumer finance company with about $13 billion of assets.
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