Capital One Financial Corporation
COF today announced that it has reached an agreement to sell the
portfolio of Best Buy private label and co-branded credit card accounts, with
current loan balances of approximately $7 billion, to Citi. In addition,
Capital One and Best Buy have agreed to end their contractual credit card
relationship early.
The sale of the loans to Citi, which is subject to customary closing
conditions, and early termination of the Best Buy partnership are expected to
be finalized in the third quarter of 2013. Upon closing, Capital One expects
that the proceeds from the sale will approximate the book value of the
accounts, resulting in no significant gain or loss on the transaction.
"We have a proven, scale partnerships infrastructure and a great portfolio of
partners," said Capital One's Bill Cilluffo, EVP, Card Partnerships. "Our
partnerships business continues to deliver strong contributions to our results
and serves as a platform for future growth potential."
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