By Devika Patel
Knoxville, Tenn., May 24 - Sterling Financial Corp. said it plans a $139 million private placement of common stock and series D convertible participating voting preferred stock with Warburg Pincus Private Equity X, LP.
As part of the Warburg Pincus investment, Thomas H. Lee Partners, LP has agreed to adjust the size of its previously announced investment to an amount equal to the Warburg Pincus investment. That deal priced for $555 million on May 3. Both investments will be made on substantially the same terms.
Upon closing, the two firms would invest a total of $278 million on a combined basis, and would hold an ownership interest of approximately 40%.
The company is selling preferreds at $92.00 apiece. Each preferred will be mandatorily convertible into 460 common shares.
It also will sell common shares, priced at $0.20 per share.
Proceeds will be used for general corporate purposes.
Sterling is a bank holding company based in Spokane, Wash.
| Issuer: | Sterling Financial Corp.
|
| Issue: | Common stock, series D convertible participating voting preferred stock
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| Amount: | $278 million, or about 40% of Sterling
|
| Warrants: | No
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| Investors: | Thomas H. Lee Partners, LP, Warburg Pincus Private Equity X, LP
|
| Pricing date: | May 3
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| Amended: | May 24
|
| Stock symbol: | Nasdaq: STSA
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| Stock price: | $0.87 at close April 30
|
| Market capitalization: | $48.3 million
|
|
|
| Common stock
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| Price: | $0.20
|
|
|
| Preferreds
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| Price: | $92.00
|
| Conversion ratio: | Into 460 common shares (per preferred)
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