Banc of California and PacWest Bancorp have announced an all-stock merger, backed by $400 million in equity from private equity firms Warburg Pincus and Centerbridge Partners. Under the terms of the agreement, PacWest will merge into Banc of California, while Banc of California N.A. will merge into Pacific Western Bank. The combined company is expected to have approximately $36.1 billion in assets, $25.3 billion in total loans, and $30.5 billion in total deposits with more than 70 branches throughout California upon completion of the deal .
PacWest stockholders are set to receive 0..6569 shares per share held at a premium value based on Tuesday’s closing prices – valuing each share at 9$.60 compared to its closing price 7$.67 per share on that day . After merging , shareholders for Pacwest will own 47%of outstanding shares for combined company , 19 % owned by Warburg Pincus & Centerbridge respectively while 34% owned by existing shareholders from BancofCalifornia . Jared Wolff who currently serves as CEO for BancofCalifornia shall retain same role post merger ; John Eggemeyer who serves as independent Lead Director board memberforPacwest shall become Chairman Board postmerger .
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