HSBC has completed the sale of its remaining US consumer finance auto loan run-off portfolio to Santander Consumer USA (SC USA).
The total consideration is approximately $3.56bn in cash, subject to post completion adjustments, and SC USA will also assume approximately $431m of debt. The carrying value of the loans at 30 June 2010 was $4.3bn.
SC USA previously acquired HSBC’s auto finance loan servicing platform and $1bn in loan receivables in March 2010.
The transaction is expected to close during the third quarter of 2010.