WSFS Financial, the parent company of WSFS Bank, has completed the sale of its senior preferred stock totalling $52.63 million to the U.S. Department of the Treasury under its capital purchase programme.
The U.S. Treasury’s capital purchase programme (CPP) is a voluntary programme designed to assist healthy institutions build their capital positions to support the U.S. economy by increasing the flow of financing to U.S. businesses and consumers.
In the transaction, the U.S. Treasury purchased 52,625 shares of newly issued WSFS Financial senior preferred stock with an aggregate liquidation preference of $52.63 million and an initial annual dividend of 5%. The U.S. Treasury also received warrants to purchase 175,105 shares of WSFS common stock at an exercise price of $45.08 per share.
The U.S. Treasury’s capital purchase programme is a voluntary programme designed to assist healthy institutions build their capital positions to support the U.S. economy by increasing the flow of financing to the U.S. businesses and consumers. Under the programme, senior preferred stock is issued to the U.S. Department of Treasury. The preferred stock will pay a dividend for the first five years, after which the rate will increase to 9% if the preferred shares are not redeemed by the company.
