Pacific Western Bank To Sell Portfolio Of 74 Real Estate Construction Loans For $2.6 Bln
(RTTNews) - Pacific Western Bank, a bank subsidiary of PacWest Bancorp (PACW), on Monday entered into a Loan Purchase and Sale Agreement with a wholly-owned subsidiary of Kennedy-Wilson Holdings, Inc. to sell to Kennedy Wilson a portfolio of 74 real estate construction loans with an approximate $2.6 billion aggregate principal balance currently outstanding.
Kennedy Wilson or its designees will also assume all remaining future funding obligations under the acquired loans of approximately $2.7 billion.
In addition, as part of the transaction, upon the Bank securing certain consents required under the underlying loan and related agreements, the Bank will also sell to Kennedy Wilson an additional six real estate construction loans with an aggregate principal balance of approximately $363 million.
The sale of the loans is subject to customary closing conditions, including Kennedy Wilson's satisfactory completion of its due diligence review.
In connection with the transaction, Kennedy Wilson will deposit a total of $20 million into a third-party escrow account that will be refundable back to Kennedy Wilson until it waives due diligence in accordance with the terms of the Agreement.
The transaction is currently expected to close in multiple tranches during the second and early part of the third quarter of 2023.
The deal is consistent with the previously announced strategy of PacWest Bancorp to pursue strategic assets sales and focus on our core community banking business.
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