Brief: Banc Of California And Pacwest Announce Transformational Merger and $400 Million Equity Raise

PacWest Bancorp

25/07/2023 22:19

July 25 (Reuters) - Banc of California Inc  BANC.N :
    * BANC OF CALIFORNIA AND PACWEST ANNOUNCE TRANSFORMATIONAL
MERGER AND $400 MILLION EQUITY RAISE FROM WARBURG PINCUS AND
CENTERBRIDGE
    * BANC OF CALIFORNIA INC - PACWEST STOCKHOLDERS WILL RECEIVE
0.6569 OF A SHARE OF BANC OF CALIFORNIA COMMON STOCK FOR EACH
SHARE OF PACWEST COMMON STOCK
    * BANC OF CALIFORNIA INC - 20%+ ACCRETION TO BANC'S 2024
ESTIMATED
EPS AND IMMEDIATELY 3% ACCRETIVE TO TBVPS FROM DEAL
    * BANC OF CALIFORNIA INC - HAS ENTERED INTO INVESTMENT
AGREEMENTS
WITH AFFILIATES OF FUNDS MANAGED BY WARBURG PINCUS LLC AND
CERTAIN INVESTMENT VEHICLES
    * BANC OF CALIFORNIA INC: JARED WOLFF, PRESIDENT AND CHIEF
EXECUTIVE OFFICER OF BANC OF CALIFORNIA, WILL RETAIN SAME ROLES
AT COMBINED COMPANY
    * BANC OF CALIFORNIA INC - WILL SELL APPROXIMATELY 21.8
MILLION
SHARES OF ITS COMMON STOCK AT A PURCHASE PRICE OF $12.30 PER
SHARE
    * BANC OF CALIFORNIA INC: JOHN EGGEMEYER WILL BECOME
CHAIRMAN OF
BOARD OF COMBINED COMPANY
    * BANC OF CALIFORNIA INC - COMBINED COMPANY IS EXPECTED TO
HAVE
APPROXIMATELY $36.1 BILLION IN ASSETS, $25.3 BILLION IN TOTAL
LOANS, $30.5 BILLION IN TOTAL DEPOSITS
    * BANC OF CALIFORNIA - WILL SELL ABOUT 10.8 MILLION SHARES
OF A
NEW CLASS OF ITS NON-VOTING, COMMON-EQUIVALENT STOCK AT A
PURCHASE PRICE OF $12.30 PER SHARE
    * BANC OF CALIFORNIA INC - COMBINED CO  TO BE HEADQUARTERED
IN LOS
ANGELES
    * BANC OF CALIFORNIA - WARBURG INVESTORS WILL GET WARRANTS
TO
PURCHASE ABOUT 15.9 MILLION SHARES OF BANC OF CALIFORNIA
NON-VOTING, COMMON-EQUIVALENT STOCK
    * BANC OF CALIFORNIA INC - CENTERBRIDGE INVESTORS WILL
RECEIVE
WARRANTS TO PURCHASE APPROXIMATELY 3.0 MILLION SHARES OF BANC OF
CALIFORNIA COMMON STOCK
    * BANC OF CALIFORNIA INC -SEES 2024 ESTIMATED EPS RANGE OF
$1.65-$1.80 FOR COMBINED CO
    * BANC OF CALIFORNIA INC: COMBINED HOLDING COMPANY AND BANK
WILL
OPERATE UNDER BANC OF CALIFORNIA NAME AND BRAND
    * BANC OF CALIFORNIA INC - EXPECT CLOSING OF MERGER TO OCCUR
IN
LATE 2023 OR EARLY 2024
    * BANC OF CALIFORNIA - SHARES ISSUED TO PACWEST STOCKHOLDERS
IN
MERGER ARE EXPECTED TO REPRESENT APPROXIMATELY 47% OF
OUTSTANDING SHARES OF COMBINED CO
    * BANC OF CALIFORNIA - SHARES ISSUED TO INVESTORS IN EQUITY
CAPITAL RAISE EXPECTED TO REPRESENT ABOUT 19% OF OUTSTANDING
SHARES OF COMBINED CO
    * BANC OF CALIFORNIA: COMBINED CO TO REPAY $13 BILLION IN
WHOLESALE BORROWINGS, FUNDED BY SALES OF ASSETS FULLY MARKED AS
RESULT OF DEAL, AND EXCESS CASH
    * BANC OF CALIFORNIA - CO'S SHARES OUTSTANDING IMMEDIATELY
PRIOR
TO DEAL COMPLETION EXPECTED TO REPRESENT ABOUT 34% OF
OUTSTANDING SHARES OF COMBINED CO
    * BANC OF CALIFORNIA INC: BANC OF CALIFORNIA, N.A. ENTERED A
$3.5
BILLION INTEREST RATE SWAP AND CONTINGENT FORWARD ASSET SALE
AGREEMENT

Source text for Eikon:  ID:nGNX70Smlh 
Further company coverage:  BANC.N 

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