Colonial BancGroup and its wholly owned subsidiary, Colonial Bank, have entered into an asset purchase agreement with Global Consumer Acquisition Corporation (GCAC), a blank check company, for the sale of its 21 branch offices located in Nevada.
Upon closing of the transaction, GCAC is expected to acquire the branch network including approximately $492 million in deposits and approximately $440 million in loans, of which approximately $326 million were originated in the Nevada franchise.
Additionally, GCAC and Colonial Bank have also executed a non-binding letter agreement expressing the parties’ good faith intention to identify additional loans satisfactory to GCAC so that the aggregate outstanding principal balance of all loans acquired by GCAC will be at least $450 million. As consideration for these additional loans, if any, GCAC would assume additional deposit liabilities with aggregate deposit balances of an amount equal to the outstanding principal balance of the additional loans.
However, the completion of this transaction is subject to approval by GCAC’s shareholders and various regulatory agencies and expected to close the transaction in the third quarter of 2009.
