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Popular Bank to acquire Reliable, Wells Fargo’s car loan business in Puerto Rico

By on February 16, 2018

SAN JUAN – According to Banco Popular de Puerto Rico, it has agreed to acquire and assume some of the debt of Wells Fargo & Co.’s car loan business in Puerto Rico, Reliable.

As part of the transaction, Banco Popular will acquire approximately $1.5 billion in retail auto loans and $340 million in commercial loans. The loan portfolio has credit characteristics that are similar to Popular’s own portfolio, the bank said in a release.

The cash transaction is expected to be of about $1.7 billion, “reflecting an aggregate discount of 4.5% on the assets to be acquired.” Popular said it will fund the purchase price with existing liquidity and anticipates the transaction to close during the second quarter of 2018.

Popular Mezzanine Fund, a new source of capital for eligible businesses in Puerto Rico

Reliable employees will become Popular employees, but Reliable will continue operating as an independent division of the bank until it is integrated into its own auto finance operation, Popular Auto.

“Even in this period of significant uncertainty, Popular continues to believe and invest in the future of Puerto Rico,” Ignacio Álvarez, CEO of the bank’s holding company, Popular Inc., says in the release.

Popular Inc. has an investor presentation with more information on its website.

Tax reform, hurricanes create losses at Popular Inc.

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