Blackstone To Acquire $869M Loan Portfolio From First Internet Bancorp

Blackstone Inc. agreed to buy up to $869 million of single-tenant lease financing loans from First Internet Bancorp’s unit, according to Bloomberg. The loans, which are performing, will be purchased at roughly 95% of the unpaid balance through Blackstone Real Estate Debt Strategies. First Internet will continue servicing the loans, which are backed by properties leased to long-term, creditworthy tenants such as drugstores, restaurants, and retailers. The bank expects to shift about $550 million of deposits off its balance sheet after closing, improving its tangible common equity ratio. The deal, slated to close on September 18th, follows similar acquisitions by Blackstone, including $2 billion in loans from Atlantic Union Bank.