UPDATE 2-Blank-check firm says in record U.S. bank purchase
* Special-purpose vehicle buys two Nevada bank businesses
* Colonial BancGroup says no government help involved (Adds analyst report, details on Colonial BancGroup, byline)
By Jonathan Stempel
NEW YORK, July 14 (Reuters) - A so-called "blank-check" company said it will acquire two Nevada community lenders in the largest such recapitalization of a bank in U.S. history.
The move suggests a new form of financing that may be available for a troubled banking industry seeking new sources of capital to bolster balance sheets.
Most of the acquired assets came from Colonial BancGroup Inc CNB.N, which has struggled as loan losses depleted capital. An analyst said the move could position the Montgomery, Alabama-based lender, which has about $26 billion of assets, as a candidate for a government-assisted sale.
Global Consumer Acquisition Corp GHC.A, the blank-check company, said the purchase includes 21 Colonial branches in Nevada and about half the bank's deposits and loans there. It also includes 1st Commerce Bank, a unit of Capital Bancorp Ltd (CBC.N), which has offices in Arizona and Michigan.
The company plans to become a commercial bank holding company named Western Liberty Bancorp. Global Consumer said it is buying only loans it deems "higher quality credits and has been able to leave the seller with all other loans." It said the timing of the closing depends on regulatory approvals.
Western Liberty would have $547 million of deposits, $474 million of loan assets and 22 branches, and operate under the 1st Commerce name. It said it plans to focus on "conservative" business and consumer lending, trade finance and deposits.
Colonial said its part of the sale includes $300 million of non-time deposits being sold at a 9.33 percent premium.
Blank-check companies, formally known as special purpose acquisition companies, were popular before the credit crisis hit two years ago, yet many have had trouble finding things to buy. A SPAC typically has two years after an IPO to make an acquisition, or it has to return money to investors. Global Consumer went public in November 2007, raising $300 million.
Jason Ader, chief executive of New York-based Hayground Cove Asset Management, which sponsored Global Consumer, would be Western Liberty's chief executive. He said the bank "plans to be a very active partner in government-assisted deals involving other depository institutions."
Colonial's capital shortfalls have resulted in special oversight by federal and Alabama regulators. In March, it said investors led by mortgage lender Taylor, Bean & Whitaker would invest $300 million in exchange for a majority stake.
Albert Savastano, a Fox-Pitt Kelton analyst, wrote that, if the Taylor Bean investment falls apart and regulators take over Colonial, Tuesday's transaction makes the bank "more desirable for another Southeast bank (probably a larger one) to acquire with government assistance or a loss-sharing agreement."
Colonial spokeswoman Lisa Free said there was "no government assistance" in the Global Consumer transaction. She declined to comment on the Taylor Bean investment. Taylor Bean did not immediately return a request for comment.
In midday trading, Global Consumer shares rose 6 cents to $9.77, while Colonial shares rose 10 cents at 73 cents. (Reporting by Jonathan Stempel; Additional reporting by Phil Wahba; editing by John Wallace and Andre Grenon)
