Truist Offloads $7.7B LightStream Loan Book to Carlyle, Frees Up Capital
TFC is trading near its 52-week low of $40.785 (11% above the low).
Summary
Truist signed a deal to sell $7.7B of loans representing substantially all of LightStream's assets to Carlyle Group, generating $7.2B in net proceeds and roughly $850M, or 20 bps, of CET1 capital. The bank says it will evaluate repositioning AFS securities to offset the capital created, and a broader strategic review is ongoing. This follows the September 8-K where Truist agreed to sell $5.5B of near-prime auto loans and exit the RAC business — a second portfolio exit in a month, signaling a deliberate balance-sheet simplification. Carlyle picks up a seasoned consumer lending book, expanding its credit footprint. Q4 guidance accompanying the release points to net interest income of $3.65-3.7B, a ~0.45% charge-off ratio, and about $1B of buybacks. Truist Financial Q3 earnings miss, hit by loan sale; agrees to sell Lightstream to Carlyle.
At the time of this announcement, TFC was trading at $45.39 on NYSE in the Finance sector, with a market capitalization of approximately $56.9B. The 52-week trading range was $40.79 to $56.20. This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: Reuters.