PacWest Bancorp gets boost from $100 million investment

Shares of PacWest Bancorp (Nasdaq:PACW) climbed 16.5% this morning following an announcement that private equity firm CagGen Financial plans to acquire approximately $100 million of newly issued shares of PacWest Bancorp common stock at a price of $26 a share.
 
The price represents a 21% premium to the last five trading-day average closing price of PacWest common stock.
 
CapGen will invest in San Diego, Calif.-based bank holding company through an investment vehicle advised by CapGen Capital Advisers LLC common stock.
 
John Rose, principal of New York-based CapGen, will join PacWest Bancorp's board of directors upon completion of the investment. In addition to a seat on PacWest's board, CapGen will be granted pre-emptive rights in future equity offerings to maintain its percentage ownership.
 
PacWest says it will use the investment toward general corporate purposes, debt retirement and "to take advantage of growth opportunities as they arise."
 
By late afternoon, PacWest is at $26.39, up $3.71 from Friday's close. The stock has traded between $11.30 and $62.56 in the past year.
 
For detailed price information and news stories on PacWest Bancorp, click PACW.

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