United Community Banks, Inc. (NYSE: UCB) (“United”) today announced the completion of the previously announced sale of its equipment finance business, consisting of Navitas Credit Corp. and NLFC Reinsurance Corp. (collectively, “Navitas”), to funds managed by Wafra Inc., acting through Navitas TopCo LLC (“Wafra”) for approximately $2.0 billion in cash1 (the “Transaction”).
The Transaction represents an attractive monetization of the equipment finance business, reflecting a 7% premium to the par value of Navitas’ loan portfolio. The sale of Navitas reinforces United’s focus on its core Southeastern relationship banking business while enhancing United’s liquidity and capital strength.
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“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.”
BofA Securities acted as exclusive financial advisor to United, and Squire Patton Boggs (US) LLP served as United’s legal advisor. Sidley Austin LLP, Chapman and Cutler LLP, and Clifford Chance LLP served as Wafra’s legal advisors.
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