Shares of First Foundation Inc., which has most of its operations in Irvine (NYSE: FFWM), fell as much as 24% after it was revealed that it’s raising $228 million to unload commercial real estate loans.
The investors, including Fortress Investment Group, Canyon Partners, Strategic Value Bank Partners, North Reef Capital and others agreed to buy common and preferred shares from First Foundation, which moved its headquarters to Dallas in 2021.
The new investors will own 49% of the bank after the deal closes, while existing shareholders will retain 51% ownership. As part of the deal, the investors will buy common and preferred shares at a price of $4.10 a share. The stock was trading at $6.57 at the close today and a $371 million market cap.
The infusion is aimed at giving the bank time to sell off certain loans, said the Wall Street Journal, which cited unidentified people close to the matter.
