Warburg Pincus finalizes Webster deal

WATERBURY, Conn. – Private equity firm Warburg Pincus has finalized its $115 million investment in Webster Financial Corp., which includes the purchase of newly issued common stock at $10 a share, as well as buying non-voting, preferred shares and warrants.
Warburg Pincus had invested $40.2 million on July 27, and recently paid $74.8 million to purchase 3 million shares of common stock and 44,570 shares of non-voting perpetual preferred stock that will be converted, pending shareholder approval, to 4.5 million of common stock.
Webster called a shareholders meeting in Waterbury, where the bank is based, on Dec. 10 to consider the matter.
A press release on the deal said also includes 6.8 million seven-year warrants with an initial strike price of $10 a share, and 4.3 million seven-year warrants with a $2.50 strike price that can be exercised only if shareholders don’t approve the deal by Feb. 28, 2010.
Webster Financial Corp. (NYSE: WBS) – a $17.4 billion company based in Waterbury, Conn. – is the holding company for Webster Bank N.A., a financial services company with more than 180 branches including 10 branches in Rhode Island. Additional information is available at www.WebsterOnline.com.