The sale of Northern Rock to Virgin Money will not include the Granite RMBS that are tied to the bank's name, according to Royal Bank of Scotland (RBS) analysts.

The U.K. government today announced it plans to sell Northern Rock to Virgin Money. The deal will bring in £747 million ($1.17 billion) in cash on closing, with an additional £50 million in cash within six months. It also comprises Tier 1 Capital notes for £150 million and an additional cash consideration of £50 to £80 million on any further sale or IPO in the next five years.

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