DebtX, a loan sale adviser and loan marketplace operator, is selling $358 million in performing and nonperforming assets for the Federal Deposit Insurance Corp.
The assets up for grabs are leftover from the FDIC's takeover of Tennessee Commerce Bank, which fell into receivership in January.
The sale is coming at a time when DebtX is seeing a growing stream of banks offloading loan assets. In some cases, banks are selling off loans to meet new Basel III capital requirements, while other firms are disposing of assets that are no longer attractive in today's marketplace.
The first $46.5 million in assets are mostly real estate loans located in Tennessee, Minnesota and Alabama, DebtX CEO Kingsley Greenland told HousingWire.
The remaining $312 million covers equipment-type financing such as rolling stock, vehicles, aircraft, construction, medical equipment, boats, commercial real estate and business assets. In that particular segment, two-thirds of the assets are performing while the remaining one-third is nonperforming. Collateral backing the listed loans is located in 41 states.
DebtX already has hundreds of interested buyers since today's market is offering them a "deep buy side" when it comes to distressed and nondistressed assets, Kingsley told HousingWire.
"There has been a considerable upswing (in asset sales)," he added. To address new regulations, some institutions are trying to get rid of some of the assets to remain in compliance.
On the other hand, Kingsley said, "banks that are healthy are starting to shed bad assets at an increasing pace just to get all of this behind them."
Nonperforming assets are generally attracting nonbanks and equity value funds. In some cases, the buyers are acquiring the loan to get to the underlying commercial real estate. "If I want to buy an office building, one way to get it is to buy the debt," Kingsley said.
Parties looking for performing loans may be equipment or construction finance firms. Generally, the assets are being sold on a granular basis with buyers targeting specific assets, Kingsley said.
Qualified investors who have an interest in the portfolio can contact DebtX.
Due diligence materials are available to qualified investors online.
Sealed bids will be accepted from 11 a.m. to 1 p.m. (EST) on Tuesday, July 17.