Fifth Third Bank

The Trigger:

• After years of bank acquisitions, the Client had a large number of performing and non-performing loans outside the Bank’s preferred geography and with little account history or lending relationship.

The Project:

• The Company retained Corner Capital Advisors and Silverstone Advisors to advise on its exit from a large portfolio of gas station and c-store loans.
• The sale was to be made via a Loan Purchase Agreement between the Company and the prospective buyer, on an all-cash consideration. Detailed loan and collateral information was provided to prospective buyers through an online data room, with the sale going to the highest bidder (s).

The Solution:

• Corner Capital Advisors and Silverstone Advisors reviewed and visited each of the gas station and c-store sites secured by the loans, valuing the underlying collateral. This information was then aggregated and modeled to provide expected yields to the Bank on the loan sales.
• The Company’s portfolio was then partitioned into Loan Blocks, categorized by the geographic region covered by loan collateral.
• Corner Capital Advisors and Silverstone Advisors leveraged their unique industry knowledge to highlight key value drivers in underlying assets such as:
• Relatively inelastic consumer demand
• Higher valuation multiples driven by acquisition activity following Big Oil’s decentralization of retail c-store assets.
• High cash flow streams attributable to unique operating strategies, and potential interest from strategic buyers in the industry and financial buyers outside the industry.

The Result:

• Corner Capital Advisors and Silverstone Advisors successfully brought the portfolio to market and delivered on the Company’s requested engagement.
• The divestiture supported the Company’s operating strategy, aligning its loan portfolio composition with its banking geography and lending relationship strategy.