PACW - PacWest stock gains on deal to sell real estate loans to Kennedy-Wilson arm
2023-05-22 08:24:39 ET
PacWest Bancorp ( NASDAQ: PACW ) stock climbed 7.2% in Monday premarket trading after the regional lender agreed to sell a portfolio of 74 real estate construction loans with a principal balance of around $2.6B to a subsidiary of real-estate investment firm Kennedy-Wilson Holdings ( NYSE: KW ), according to an SEC filing.
The Los Angeles-based bank said it will also offload an additional six real estate construction loans with a principal balance of ~$363M to Kennedy-Wilson ( KW ).
PacWest ( PACW ), caught up in the regional-bank selloff amid three bank failures, said earlier this month that it was in talks with potential partners and investors about strategic options.
The construction loans deal, subject to Kennedy-Wilson's ( KW ) satisfactory due diligence, is expected to close in multiple tranches in the second and early part of the third quarter of 2023. KW will deposit $20M into a third-party escrow account that will be refundable.
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PacWest stock gains on deal to sell real estate loans to Kennedy-Wilson arm