SAN DIEGO (AP) -- PacWest Bancorp said Tuesday it will receive a $100 million investment from private equity firm CapGen Financial, which in turn will take a seat on the community bank's board.Shares shot up $3.23, or 14.2 percent, to $25.91 in afternoon trading. Shares have traded between $11.30 and $64 in the past 12 months.
CapGen has agreed to buy $100 million of newly issued shares of PacWest common stock for $26 apiece -- a 15 percent premium to the stock's Friday closing price of $22.68. After the investment is completed, expected to be in the fourth quarter, CapGen will own a 12 percent stake in the San Diego-based company.
The investment increases the company's book value per share, as well as its regulatory capital ratios.
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