United Community Banks, Inc. confirmed today the completion of its equipment finance business sale. Consequently, the deal involves Navitas Credit Corp. and NLFC Reinsurance Corp., collectively known as Navitas. Furthermore, funds managed by Wafra Inc. acquired the business through Navitas TopCo LLC. The equipment finance sale totals approximately $2.0 billion in cash. Therefore, this transaction marks a significant milestone for United Community Banks this year.
Additionally, the deal reflects a 7% premium above Navitas’ loan portfolio par value. As a result, the equipment finance sale represents attractive monetization for United. Meanwhile, this move reinforces United’s commitment to its core Southeastern relationship banking business. Moreover, the transaction strengthens United’s liquidity position significantly. Similarly, it enhances the company’s overall capital strength going forward.
Leadership Reacts to Navitas Transaction Completion
“We are pleased to announce the completion of the Navitas sale to Wafra,” said Lynn Harton, Chairman and Chief Executive Officer. “Over the past eight years, Navitas has been a strong contributor to United, delivering meaningful growth and returns. We are confident that Wafra is well positioned to support Navitas’ continued success. This transaction enables United to sharpen our focus on our core Southeastern markets, simplify our business model, and further reduce our risk profile.”
Notably, Harton’s statement highlights Navitas’ eight-year contribution to United’s growth. Subsequently, the equipment finance sale allows United to simplify its overall business model. In addition, the transaction helps reduce United’s broader risk profile. Thus, United Community Banks continues sharpening its focus on Southeastern markets.
Advisors Guide the Navitas Equipment Finance Deal
BofA Securities served as exclusive financial advisor throughout the transaction process. Meanwhile, Squire Patton Boggs (US) LLP provided legal advisory services to United. On the other hand, Sidley Austin LLP represented Wafra’s legal interests during negotiations. Likewise, Chapman and Cutler LLP supported Wafra’s legal advisory team. Similarly, Clifford Chance LLP rounded out Wafra’s legal advisory group.
Overall, this equipment finance sale strengthens United Community Banks’ strategic direction significantly. Going forward, the bank will concentrate resources on core Southeastern banking operations. Ultimately, the Navitas transaction positions both United and Wafra for continued success.
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News Source: GlobeNewswire.com
