U.S. lender PacWest has agreed to sell its $2.6 billion portfolio of home construction loans to boost its liquidity, according to information released by Business Insider.
Kennedy-Wilson Holdings Inc. will purchase 74 loans at a discounted price of approximately $2.4 billion and assume all future loan financing commitments of approximately $2.7 billion.
The bank took these steps to support its liquidity after the withdrawal of customer deposits led to the bankruptcy of several regional creditors.
PacWest is currently considering strategic options and has already received $1.4 billion from a credit facility provided by Atlas SP Partners.
If approved, PacWest will also sell 6 more Kennedy Wilson loans worth approximately $363 million.
On the New York Stock Exchange, the bank's shares rose 12.5% in early trading today.