KeyBank Sells $3.2 Billion Indirect Retail Auto Loan Portfolio
September 10 2021 - 7:13PM
Dow Jones News
By Josh Beckerman
KeyCorp unit KeyBank sold its $3.2 billion indirect retail auto
loan portfolio to a vehicle managed by a unit of Waterfall Asset
Management LLC.
KeyBank will remain the servicer of the auto loans.
Concurrently with the sale, KeyBank bought $2.8 billion of
senior notes from a securitization collateralized by the sold
loans.
In October, KeyCorp said it planned to end origination of
indirect auto loans.
KeyCorp said Friday that it entered an accelerated stock buyback
agreement for up to $585 million, part of its previously disclosed
repurchase program. KeyCorp will initially receive delivery of
about 23.5 million shares on Sept. 14.
The accelerated buyback was aided by capital generated from the
sale of the auto loan portfolio, KeyCorp said, and the company is
"committed to returning capital to our shareholders."
Write to Josh Beckerman at josh.beckerman@wsj.com
(END) Dow Jones Newswires
September 10, 2021 18:58 ET (22:58 GMT)
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