PacWest shares extend recovery on sale of real-estate lending unit
Shares of PacWest Bancorp (PACW.O) climbed 6.4% in premarket trading on Wednesday after the U.S. mid-sized lender agreed to sell its property lending unit in the second asset sale this week to bolster its balance sheet.
The stock has nearly tripled in value to close at $7.38 on Tuesday since hitting a record low on May 4 on a report that the Los Angeles-based bank was exploring strategic alternatives.
However, shares remain about 68% lower since the start of the year after being caught up in the regional banking crisis.
Real estate financing firm Roc360 late on Tuesday said it would acquire the PacWest unit for an undisclosed amount. The division offers loans to landlords and investors interested in purchasing homes for renovation and resale.
On Monday, PacWest announced the sale of $2.6 billion worth of real estate construction loans at a discount.
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