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PacWest Bancorp selling $1.49B cash flow loan portfolio

Beverly Hills, Calif.-based Pacific Western Bank is selling substantially all of its portfolio related to healthcare, technology and general cash flows to Morgan Stanley Bank NA for approximately $1.48 billion.

PacWest Bancorp, Pacific Western's parent company, said the portfolios have a total carrying value of $1.49 billion as of Nov. 30. The company expects to record a $13 million pretax gain on the sale.

With this sale, which is expected to close on or before Dec. 31, PacWest intends to exit its commercial lending origination operations related to healthcare, technology and general cash flows. It will, however, continue to grow its security cash flow business.

PacWest is considering its options for redeploying the liquidity that will be generated by the pending sale.

The company is planning to sell an additional portfolio of performing technology cash flow loans with a total principal balance of about $152 million. It expects to reach a deal before the end of 2017.

As of Sept. 30, Morgan Stanley Bank had $126.90 billion in assets, while Pacific Western Bank had $22.23 billion in assets.