Doral Financial Corporation, the financial services holding company of Doral Bank, with operations in Puerto Rico and the U.S. mainland, announced Tuesday the sale of some $430 million in assets to Barclays Inc.
The sale will net $423 million for Doral Bank, the financial institution disclosed.
“Today we announced the successful signing of another asset sale transaction, part of our plan to restructure our company. In all, these asset transactions help Doral continue to progress by de-risking the bank, preserving capital and increasing liquidity,” said Glen Wakeman, CEO of Doral Financial Corporation.
Abbey Depositor Inc., a Delaware corporation and wholly-owned subsidiary of Doral Bank, closed on the sale of approximately $429.3 million of its PR Mortgage Loan Trust 2014-1 Mortgage Pass-Through Certificates, Series 2014-1 to Barclays, as established in a purchase agreement dated Sept. 5.
The certificates represent some 4,178 seasoned, fixed rate and fully amortizing, first lien residential mortgage loans having a total principal balance of approximately $429.3 million serviced by Doral Bank.
Doral Financial Corporation was advised by Houlihan Lokey.
This is the most recent transaction the financial institution has conducted in recent months, looking to drum up liquidity. In July, the company sold $824.4 million in non-performing loans to Abbey Finance Holdings PR, LLC, for a discounted amount of $369 million.
The prior month, Doral entered into a transaction hand over $242.1 million in loans as collateral to FirstBank as part of a credit agreement between the parties entered into on May 25, 2006.
Doral has been under the watchful eyes of federal regulators who earlier this year warned the bank it needed to address liquidity issues, or breach its capital requirements under the Federal Deposit Insurance Corp.
Furthermore, for the better part of the last six months, Doral has been tangled up in a battle with the Treasury Department over a tax refund of $229.8 million it claims the government agency granted it in 2012, but which Treasury nullified in April. The matter will go to trial later this month, after the parties failed to reach an agreement following court-ordered talks.