Warburg Pincus has agreed to invest $115 million in Webster Financial Corporation, through a direct purchase of newly issued common stock at $10 per share, junior non-voting preferred stock, and warrants.
As part of the transaction, Warburg Pincus will receive 8.6 million seven-year Class A Warrants. Pro Forma for its investment, Warburg Pincus will own 5.9% of Webster’s common stock outstanding prior to the bank regulatory and shareholder approvals, and 15.2% of common stock outstanding following all required approvals.
James Smith, chairman and CEO of webster, said: Warburg Pincus’ investment further strengthens Webster’s capital base which already significantly exceeded regulatory requirements for well-capitalized banks. The additional capital will enable us to capitalize on the extraordinary banking opportunities in the market as we pursue our vision to be New England’s bank.
David Coulter, MD of Warburg Pincus, commented: We are confident that with its strong capital base, deep regional bank core deposit franchise and critical mass in its home markets, Webster is well positioned to drive exceptional value for both its customers and shareholders. We see Webster offering tremendous upside potential and promise, and I look forward to serving on Webster’s board.
JP Morgan served as financial advisor to Warburg Pincus. Deutsche Bank Securities served as financial advisor to Webster.
Webster Financial Corporation is the holding company for Webster Bank, National Association. With $17.5 billion in assets, Webster provides business and consumer banking, mortgage, financial planning, trust and investment services.
Warburg Pincus is a global private equity firm with more than $25 billion in assets under management.
