The Bank Slate


PacWest selling $3B of real estate construction loans

PacWest Bancorp in Los Angeles has agreed to sell a portfolio of real estate construction loans.


The $44.3 billion-asset company disclosed in a regulatory filing that it will sell 74 loans with an aggregate balance of $2.6 billion to Kennedy-Wilson Holdings. Subject to certain conditions, PacWest will sell six more loans with a total outstanding balance of $363 million.


Kennedy-Wilson said in a separate filing that it will pay $2.4 billion for the first 74 loans.


Kennedy-Wilson will also assume about $2.7 billion of remaining future funding obligations tied to the acquired loans.


PacWest said that Kennedy Wilson will deposit $20 million into a third-party escrow account. The sales are expected to close in several phases during the second and third quarters.


PacWest had moved $2.8 billion of loans to held-for-sale status during the first quarter.

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