Anchor BanCorp Wisconsin (ABCW) in Madison has completed a $175 million recapitalization.
With funding from private and institutional investors, the $2.3 billion-asset company has capital levels above the threshold regulators consider for being well-capitalized, Anchor said in a press release Friday. At June, it had a Tier 1 leverage ratio of 4.6% and total risk-based capital of 9.2%, respectively, according to a prior regulatory filing.
The bankruptcy allowed Anchor to restructure its debt, including the $138 million it owed the Treasury Department for the Troubled Asset Relief Program and accrued dividends. Instead, the Treasury received a 3.3% common stake in the company. The plan also allowed Anchor to repay $183 million in debt at a 73% discount.
"We have been aggressively working for four years to get to this point, and we're proud that the recapitalization effort is now complete, positioning AnchorBank for a full return to profitability and growth," Chris Bauer, Anchor's president and chief executive, said in a press release. Bauer joined the struggling company in 2009 to oversee the recapitalization effort, which included recruiting new senior management and cutting costs.
Sandler O'Neill was the deal's financial advisor and placement agent. Skadden, Arps, Slate, Meagher & Flom also provided advice to Anchor, which has 55 branches in Wisconsin.