: PacWest sells loan portfolio to Ares Management in deal that generates $2 bln ‘to improve liquidity’

PacWest Bancorp PACW said Monday it agreed to sell a lender finance loan portfolio to Ares Management Corp. ARES in a deal expected to provide $2 billion before transaction costs for the bank. Additional tranches to generate more cash are currently expected to close in “future periods” as unfunded commitments are disbursed and then sold, PacWest said. PacWest said the first tranche closed on June 22 when Ares bought an aggregate outstanding principal balance of $2.07 billion and assumed $187.14 million of the $1.33 billion unfunded commitment in the portfolio. It’s the second major loan portfolio sale by PacWest after it sold construction loans for $2.36 billion to Kennedy Wilson KW in early June. PacWest said the two deals “will improve our liquidity and our capital ratios” as part of a plan to consider strategic alternatives. PacWest stock is up 5% in premarket trades.

Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.