PacWest to Be Sold to Banc of California in Latest Rescue Deal

PacWest Bancorp is being bought by smaller rival Banc of California as it seeks to navigate a bout of upheaval that brought down a handful of its peers.

The deal includes a $400 million investment from Warburg Pincus and Centerbridge Partners, which obtain about 20% of the combined company and receive warrants to buy more shares, the banks said Tuesday.

PacWest stockholders will get 0.66 of a share of Banc of California common stock for each of their shares. The banks will sell assets with the aim of repaying $13 billion of wholesale borrowings, they said.

The merger is aimed ...