Californian bank PacWest has reached a deal to sell more than $2bn of loans to real estate investment group Kennedy-Wilson at a discount, just weeks after it said it was looking at narrowing focus to its core community banking business.
Kennedy-Wilson said in a filing on Monday that it was paying $2.4bn for 74 floating-rate loans with an aggregate principal balance of $2.6bn.
Pacwest’s share price jumped by 10% in early morning trading.
Pacwest could also sell an extra six real estate construction loans worth around $363m.
