Seeking to shore up its balance sheet, troubled regional bank PacWest Bancorp has agreed to a sell a portfolio encompassing 74 construction loans to Kennedy-Wilson Holdings for $2.4B, a discount of $200M, according to a report in Reuters.

Kennedy-Wilson said it will also assume $2.7B in potential funding obligations associated with the loans, and will take over, subject to clearances secured by PacWest, an additional six real estate construction loans with a balance estimated at $363M, according to a regulatory filing.

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