Webster Financial Corp. (WBS) said Thursday that private equity firm Warburg Pincus has completed its previously announced $115 million investment in Webster.
The investment includes a direct purchase of newly issued common stock at $10 per share, non-voting perpetual participating preferred stock, and warrants.
Warburg Pincus invested $40.2 million on July 27 and today invested the remaining $74.8 million in Webster to purchase 3 million shares of common stock; 44,570 shares of non-voting perpetual participating preferred stock that, following the receipt of shareholder approval, will convert into 4.5 million shares of common stock; 6.8 million seven-year A-Warrants, Series 2, which initially have a strike price of $10.00 per share, with the strike price increasing to $11.50 per share on October 15, 2011 and to $13.00 per share on October 15, 2013; and 4.3 million seven-year B-Warrants, Series 2 with a strike price of $2.50 per share which will only become exercisable and transferable if shareholder approval is not received by February 28, 2010. The B-Warrants, Series 2 will expire immediately upon receipt of shareholder approval.
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