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Banc of California and PacWest Announce Transformational Merger and $400 Million Equity Raise from Warburg Pincus and Centerbridge

07.26.23

The Firm is representing funds managed by Centerbridge Partners, L.P. in connection with their agreement, together with funds managed by Warburg Pincus, to invest $400 million in newly issued equity securities of Banc of California, Inc. (NYSE: BANC). The equity investment will be made concurrently with, and subject to, the closing of Banc of California’s announced merger with PacWest Bancorp (Nasdaq: PACW), and will represent approximately 19% of the combined company’s outstanding shares.

Under the terms of the merger agreement, PacWest will merge into Banc of California, and Banc of California, N.A. will merge into Pacific Western Bank. The combined holding company and bank, with approximately $36 billion in assets and more than 70 branches in California, will operate under the Banc of California name and brand following closing of the transaction. The equity investment will be utilized in conjunction with other planned actions to reposition the combined company’s balance sheet and generate cost savings.

Centerbridge Partners, L.P. is a private investment management firm employing a flexible approach across investment disciplines — Private Equity, Private Credit and Real Estate — in an effort to develop the most attractive opportunities for investors. The Firm was founded in 2005 and as of May 31, 2023 has approximately $36 billion in capital under management with offices in New York and London. Centerbridge is dedicated to partnering with world-class management teams across targeted industry sectors and geographies.

The Simpson Thacher team includes Lee Meyerson, Sebastian Tiller, Jihyun Chung, Daniel Westen and Steven Jeffries (M&A); Amanda Allexon (Bank Regulatory); Ryan Bekkerus (Capital Markets) and Sophie Staples (Tax).