PacWest begins sale of $5.7 billion loan portfolio to Kennedy Wilson
PacWest Bancorp has completed the first part of the sale of a $5.7 billion loan portfolio to the real estate investment company Kennedy Wilson Holdings as the U.S. regional bank takes steps to shore up liquidity.
The first tranche of loans acquired by Kennedy Wilson and its affiliate Fairfax Financial Holdings totaled $3.25 billion in commitments and $1.8 billion in principal balances, Kennedy Wilson said in a statement Friday.
Cain International and Security Benefit Life Insurance agreed to buy 10 of the loans, which are focused on rental apartments and student-housing developments in New York City and its suburbs, according to a separate statement.
PacWest is taking steps to bolster its finances after runs on deposits struck several regional lenders earlier this year, leading to the collapse of three California-based banks and one in New York. Its shares have slumped 60% this year amid the turmoil.