PacWest Bancorp in Los Angeles continues to shed assets.
The $44.3 billion-asset company disclosed in a regulatory filing that it agreed to sell a portfolio of lender finance loans with a total commitment amount of roughly $3.5 billion to alternative credit strategy funds managed by Ares Management.
The portfolio includes an aggregate outstanding principal balance of about $2.2 billion.
PacWest said the first tranche closed on June 22, with Ares buying an aggregate outstanding principal balance of $2.1 billion and assuming $187.1 million of the portfolio’s unfunded commitment. PacWest said it received cash proceeds of $2 billion, before transaction costs, from the sale.
Other tranches are expected to close over time as unfunded commitments are disbursed and sold.
PacWest recently brought in $2.4 billion of cash proceeds from selling a portfolio of national construction loans. It also sold unit Civic Financial Services to Roc Capital Holdings.