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.
