NEW YORK — Bracewell & Giuliani LLP represented Flagstar Bancorp, Inc., the holding company for Flagstar Bank, in its announced sale of a substantial portion of its Northeast-based commercial loan portfolio. Flagstar has entered into a Transaction Purchase and Sale Agreement under which a wholly-owned subsidiary of CIT Bank, the U.S. commercial bank subsidiary of CIT Group Inc., will acquire this portion of the portfolio. The transaction is effective December 31, 2012.
Under the terms of the Agreement, CIT will acquire $1.264 billion in commercial loan commitments, $785 million of which is currently outstanding. The loans sold consist primarily of asset-based loans, equipment leases and commercial real estate loans. Flagstar expects that the total purchase price will be approximately $779 million and that a vast majority of the assets will be sold during the first quarter of 2013.
Bracewell attorneys involved in the transaction are:
Partner: Jonathan P. Gill
Associates: Marcus D. Friedman and Adam B. Shane