PacWest Bancorp said it secured $1.4 billion of cash from a financing facility from Atlas SP Partners after clients drew down an additional 20% of the bank's deposits and that the firm is abandoning a separate push to raise capital.
The shares dropped 11% in premarket trading as of 9:09 a.m. in New York.
About $4.9 billion of the total outflows of $6.9 billion came from its venture banking segment, the company said Wednesday in a statement. Deposit levels have "stabilized," it added.
The firm borrowed $3.7 billion from the Federal Home Loan Bank System, $10.5 billion from the Federal Reserve's discount window and $2.1 billion in Bank Term Funding Program as of March 20.
"In light of the current volatility in the market and depressed market prices for regional bank stocks, as well as the availability of other options to enhance capital, the company determined it would not be prudent to move forward with a transaction at this time," the Beverly Hills, California-based lender said of raising capital.
