Question
December 14, 1992
Staff Attorney
Patrick Sharpe, Esq. (Note from PS: I am not an attorney; my title is compliance specialist.)
Premerger Notification Office
Bureau of Competition
Room 303
Federal Trade Commission
6th Street and Pennsylvania Avenue, N.W.
Washington, D.C. 20580
Re: Purchase of a loan portfolio
Dear Mr. Sharpe:
This letter is to confirm our December 10, 1992 conversation during which you informed me that the transaction described below is exempt from the premerger notification requirements of the Hart-Scott-Rodino Antitrust Improvements Act.
The transaction consists of the purchase by [redacted] of approximately $40 million in loans from [redacted]. The loans are loans made by [redacted] to 28 independent leasing companies. The loans are secured by [redacted] leased by the independent leasing companies and by the leases for the leased [redacted]. The loans were initially made by [redacted] as revolving loans. However, on January 1, 1992, [redacted] terminated all but one of the loans and has made no further advances to 27 of the 28 independent leasing companies this year.
As of the end of the third quarter of 1992, [redacted] total loan portfolio was approximately [redacted], including [redacted] in consumer receivables, [redacted] in lease receivables and over [redacted] in commercial loan receivables.
After the acquisition of the 28 loans, [redacted] may reopen some of the terminated loans and make additional advances. In addition, [redacted] intends to continue making advances to the one loan which has not been terminated. (PNO staff note: Irrelevant. We are concerned about the seller continuing in the loan business, not the buyer. Is seller exiting the business?)
Thank you for your prompt assistance in this matter.
Very truly yours,
[redacted]
cc: [redacted]
[redacted]