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Sterling recapitalization plan nears completion

Sterling Financial Corp. today announced new investments that could fulfill the Spokane institution's need for additional capital.

Thomas H. Lee Partners, which last week committed $134 million to the recapitalization effort, will increase its investment to $170 million.

Sterling said it will also offer, in a private placement, $555 million in common and convertible preferred shares to accredited private investors.

If that offering is successful  – a spokeswoman said she could not comment on whether there were buyers for the new stock – the combined investment of $725 million would bring Sterling and its principal subsidiary, Sterling Savings Bank, into compliance with regulatory capital requirements.

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Bert Caldwell
Bert Caldwell oversees production of the opinion pages, including writing editorials, and editing and selecting letters, columns and cartoons.