San Diego-based PacWest Bancorp has completed a private placement with the private equity firm CapGen Financial under which the company has issued 3,846,153 PacWest common shares to Cap
San Diego-based PacWest Bancorp has completed a private placement with the private equity firm CapGen Financial under which the company has issued 3,846,153 PacWest common shares to CapGen Capital Group II at USD26 per share, for a total of around USD100m.
John Rose, a principal of CapGen Financial, has joined PacWest’s board and has also been appointed to the board’s executive committee.
On a pro forma basis for the investment, PacWest’s book value per share at 30 September 2008 would be USD14.88. PacWest says this represents an increase of 11 per cent from its actual book value per share of USD13.36.
PacWest says it plans to use the additional capital from this investment for general corporate purposes, to fund debt retirement and to take advantage of strategic growth opportunities as they arise.
CapGen Financial invests in financial services businesses with a particular focus on community and regional financial institutions, specialty finance and related services. CapGen Capital Group II has registered as a bank holding company and following the investment owns approximately 12 per cent of PacWest common stock on a fully-diluted basis as of 30 September.
San Diego-based PacWest Bancorp is a bank holding company with USD4.4bn of posted assets as of 30 September. The firm’s wholly-owned banking subsidiary, Pacific Western Bank, operates through 60 banking branches and four branches of the former Security Pacific Bank.
