Discover (DFS) announced that Discover Bank has entered into an agreement to sell its private student loan portfolio to one or more strategic partnerships comprised of investment vehicles and accounts managed by Carlyle (CG) and KKR (KKR), with Firstmark Services, a division of Nelnet (NNI), assuming responsibility for servicing the portfolio upon the sale. As of June 30, the principal balance of the private student loan portfolio was approximately $10.1B. The purchase price payable to Discover in the transaction is at a premium to the principal balance of the private student loan portfolio and, based on certain assumptions, is expected to be up to approximately $10.8B. The transaction is expected to be completed in multiple closings by the end of 2024, subject to the satisfaction or waiver of customary closing conditions.
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