(Bloomberg) — PacWest Bancorp, which has been in trouble since two rival banks failed last month, is considering selling its lender finance unit, according to a person familiar with the matter. clarified.
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The Beverly Hills, Calif.-based bank is working with financial advisers to solicit interest in the business, said the people, who asked not to be identified because the matter is private. is. A deal could be reached within two months, one of the people said.
Ditching the unit would shrink PacWest’s balance sheet while freeing up capital, the people said. No final decision has been made and PacWest may choose to continue operating, the people added.
PacWest’s latest annual report said its lender finance business, which had made about $3 billion in loans as of the end of 2022, is offering revolving credit to small business and commercial real estate lenders used to purchase finance receivables. We offer a line.
A PacWest representative declined to comment.
PacWest needed to boost its liquidity last month after customers withdrew about 20% of their deposits following the failures of Silicon Valley Bank and Signature Bank.
The bank, whose share price has fallen 60% since early March, secured $1.4 billion last month from a financing facility from Atlas SP Partners, an investment firm owned by Apollo Global Management. PacWest plans to report earnings on April 25th. .
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