Seeking to shore up its balance sheet, troubled regional bank PacWest Bancorp has agreed to a sell a portfolio encompassing 74 construction loans to Kennedy-Wilson Holdings for $2.4B, a discount of $200M, according to a report in Reuters.
Kennedy-Wilson said it will also assume $2.7B in potential funding obligations associated with the loans, and will take over, subject to clearances secured by PacWest, an additional six real estate construction loans with a balance estimated at $363M, according to a regulatory filing.
PacWest has lost three-quarters of its market value since the beginning of the banking crisis in March. The bank has been the focus of concerns following the collapse of three other regional banks, Silicon Valley Bank, Signature Bank and First Republic.
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