Mellon Bank to Buy Ford's Leasing Business

08/08/96

Reuters has reported that Mellon Bank Corporation will buy Ford Motor Company's leasing subsidiary, the business equipment financing unit of USL Capital Corp. Mellon bank will pay $1.7 billion to purchase the unit, $1.5 billion of which is the book value and $200 million of which is a premium. USL's business equipment financing unit provides leasing and financing services to more than 2,500 middle market companies.

Ford said proceeds from the sale will be used to partially pay off the debt its financial services group has accrued. The unit's sale is the latest in a series of Ford's divestitures from USL and forms part of its attempt to sell each USL Capital division separately. The deal is expected to close by the end of the third quarter.

Ford is still conducting talks to negotiate the sale of USL's real estate financing unit.

Paul Dever -- The Auto Channel