In brief: Sterling Financial announces more potential investments

Sterling Financial Corp. on Monday announced new potential 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. The securities are expected to consist of almost 222 million shares of common stock at 20 cents a share.

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.

In a news release, Sterling said it expects to use the new proceeds to pay down $275 million in liabilities and maybe for “the funding of potential acquisitions.”

Bert Caldwell

Stronger economic reports give rebound to markets

NEW YORK – Investors sent stocks soaring Monday after getting a boost of confidence from the latest economic reports and Warren Buffett’s defense of Goldman Sachs.

The Dow Jones industrial average rose 143 points for its biggest gain in 2 1/2 months. The Dow and broader indexes all climbed more than 1 percent.

The market rebounded from a drop Friday after a string of welcome news eased some of the concerns that have been dogging investors. Economic reports signaled that consumer spending and manufacturing are strengthening.

Associated Press

General Motors celebrates Suburban’s 75th anniversary

ARLINGTON, Texas – The Chevrolet Suburban, the roomy choice of hunters, law enforcement agencies and soccer moms, celebrated its 75th anniversary Monday as the longest continuously produced vehicle in the U.S.

The sport utility vehicle is only made at General Motors’ Arlington plant, which showcased one of the first Suburbans ever produced – a boxy yellow version from 1936 with large round headlights and a spare tire on each side. The interior featured a big steering wheel and spacious tan and dark brown vinyl seats that could be removed for storage space.

Unveiled as the Suburban Carryall more than seven decades ago, it could seat eight people comfortably and offered whitewall tires, a radio and heater as options. Unlike other 1930s cars that had wood sides and canvas tops, the early Suburban was designed as a more durable truck-type vehicle with an all-steel wagon body.

Associated Press