PacWest Bancorp
shares rose early on Monday after the lender sold a $3.5 billion portfolio of loans to
Ares
Capital.
PacWest (ticker: PACW) jumped more than 7% in premarket trading, but remained down more than 70% over the past year as the lender came into focus amid the turmoil among regional banks after the collapse of Silicon Valley Bank. The sale of the loans takes some risk off PacWest’s books and generates some $2 billion before transaction costs for the bank.
The portfolio acquired by Ares (ARES), an alternative investment manager, includes consumer loans, small business loans, timeshare, auto loans, and others. Ares stock was little changed before the market opened.
“This transaction will improve our liquidity and capital as we continue to implement our announced strategy to return our focus to relationship-based community banking,” PacWest CEO Paul Taylor said.
Write to Brian Swint at [email protected]
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