Sterling to Raise $730M in Capital
- Aug 20, 2010
August 20, 2010
By Allison Landa, News Editor
Sterling Financial Corp., the bank holding arm of Sterling Savings Bank, on Friday announced its intention to raise $730 million in fresh capital from institutional, private equity and other accredited investors, with the transaction slated to close on Aug. 26.
President and CEO Greg Seibly said the capital commitment would substantially strengthen the firm’s financial ratios along with providing a solid base for rebuilding longterm franchise value. The agreement is part of Sterling’s major recapitalization plan.
Sterling also said that the U.S. Treasury plans to convert its $303 million investment of preferred company stock into common shares. In addition to investments from Thomas Lee Partners, L.P. as well as Warburg Pincus Private Equity X, L.P., a total of 4.2 billion shares will be issued.
Upon closing and regulatory approval, former vice chairman and chief operating officer of Wells Fargo & Co. Les Biller will serve as Sterling’s chairman of the board.