Lloyds to sell some leveraged loans to Goldman unit for £254 million

By Susanna Moon

Chicago, Aug. 21 - Lloyds Banking Group plc said it agreed to sell a portfolio of leveraged loans to ELQ Investors II Ltd., a wholly owned subsidiary of Goldman Sachs Group, Inc., for £254 million in cash, with another £2 million payable within six months if financial conditions are met.

The sale is part of the group's continued non-core asset reduction strategy, according to a company press release.

The portfolio has gross assets of £283 million, mainly consisting of U.K.-based assets in a range of sectors including manufacturing and retail. The portfolio generated profits of £11 million in the year to Dec. 31, 2012.

The deal will result in a small core tier 1 increase for the group.

Proceeds will be used for general corporate purposes.

The transaction is expected to complete by the end of September 2013.

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