AIG Unit Sells Credit Suisse Mtge-Backed Loans For Up To $975M
DOW JONES NEWSWIRES
American International Group Inc. (AIG) unit American General Finance Inc. stands to get as much as $975 million from the sale of mortgage-backed certificates to Credit Suisse Group AG (CS), according to a filing Tuesday with the U.S. Securities and Exchange Commission. American General said it will use the cash to boost its liquidity and funding needs, including debt repayment of about $313 million. The loans backing the certificates have a balance of about $1.6 billion, the Evansville, Ind., provider of consumer finance and credit insurance disclosed in the filing. It said it entered into a sales agreement July 8 with Credit Suisse, with the loans to be serviced by Private National Mortgage Acceptance Co. LLC, or PennyMac, which is run by former Countrywide Financial Corp. executive Stanford Kurland. Proceeds from the sales are expected to total between $925 million and $975 million, depending on the final size of the mortgage pool and after expenses, and should close by July 30 |