The Royal Bank of Scotland (RBS) would be selling a shipping loan worth USD800 million. The exit was part of RBS' moves to scale down exposure to the seaborne industry, said sources quoted in a Reuters report.
State-owned RBS was considering to sell its outstanding loan in US-based dry bulk vessels owner Eagle Bulk Shipping. Eagle Bulk's stock is currently valued at as much as USD80 million.
Sources said bidders for the RBS loan included Bank of America and private equity investment firms Tennenbaum Capital Partners and Oaktree Capital Management. In a separate interview with Reuters, another source said that the Centerbridge Partners was also among the bidders.
The range of pricing on offer on the Eagle Bulk loan was at a 15% to 20% discount, according to the report.
The British government intended to divest its stakes in RBS and rival Lloyds Banking Group at the soonest possible time. Britain pumped a total of GBP66 billion to keep the said banks afloat during the financial crisis in 2008.
Join the Conversation