75.1 F
Laguna Hills
Thursday, Jul 18, 2024
-Advertisement-

First Foundation Shares Plunge on Capital Raise

New investors buy 49% of bank

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.

Want more from the best local business newspaper in the country?

Sign-up for our FREE Daily eNews update to get the latest Orange County news delivered right to your inbox!

Peter J. Brennan
Peter J. Brennan
Peter J. Brennan has been a journalist for 40 years. He spent a decade in Latin America covering wars, narcotic traffickers, earthquakes, and business. His resume includes 15 years at Bloomberg News where his headlines and articles sometimes moved the market caps of companies he covered by hundreds of millions of dollars. His articles have been published worldwide, including the New York Times and the Washington Post; he's appeared on CNN, CBC, BBC, and Bloomberg TV. He was awarded a Kiplinger Fellowship at The Ohio State University.
-Advertisement-

Featured Articles

-Advertisement-
-Advertisement-
-Advertisement-
-Advertisement-

Related Articles

-Advertisement-
-Advertisement-