PACWEST BANCORP (NASDAQ:PACW) Files An 8-K Entry into a Material Definitive AgreementItem 1.01. Entry into a Material Definitive Agreement.
On December7, 2017, Pacific Western Bank, a California-chartered commercial bank (“Pacific Western Bank”) and wholly-owned subsidiary of PacWest Bancorp, a Delaware corporation (“PacWest”), on behalf of itself and certain of its affiliates (together with Pacific Western Bank, “Pacific Western”), entered into a binding agreement with the loan trading desk of Morgan Stanley, a Delaware corporation (“Morgan Stanley”) under which Pacific Western would sell substantially all of its portfolio of healthcare, technology and general cash flow loans to Morgan Stanley Bank, N.A. an affiliate of Morgan Stanley (“MSBNA”). Upon consummation of the sale, which is anticipated to take place on or before December31, 2017, MSBNA will pay Pacific Western approximately $1.48 billion for the portfolio. In connection with the sale of the portfolio, Pacific Western will exit its commercial lending origination operations related to its healthcare, technology and general cash flow lending groups. The portfolio of loans subject to the loan sale transaction had an outstanding principal balance of approximately $1.49 billion as of November30, 2017.
The loan sale will be consummated to a master trade confirmation substantially in the form most recently published by The Loan Syndications and Trading Association,Inc. (“LSTA”) for par/near par trades, as well as an appropriate LSTA form assignment agreement. Pacific Western expects to receive the proceeds for substantially all sold loans by December31, 2017.
Item 7.01. Regulation FD Disclosure.*
On December11, 2017, PacWest issued a press release announcing the loan sale transaction, a copy of which is attached as Exhibit99.1 of this Form8-K.
Item 9.01 Financial Statements and Exhibits.*
(d)Exhibits.
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ExhibitNo. |
Description |
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99.1 |
Press Release, dated December11, 2017. |
* The information furnished under Item 7.01 and Item 9.01 of this Current Report on Form8-K, including the exhibit, shall not be deemed “filed” for purposes of Section18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities under that Section, nor shall it be deemed incorporated by reference in any registration statement or other filings of PacWest under the Securities Act of 1933, as amended, except as shall be set forth by specific reference in such filing.