LOS ANGELES - CalFed Inc. said its stockholders and bondholders satisfied the conditions for an exchange offer and restructuring to add more than $150 million in capital to its principal subsidiary and relieve the company of a $160 million obligation to its bondholders.

In addition, all regulatory approvals needed to complete the transaction were received. The company expected the transaction to be completed Wednesday.

The company said that more than 97% of its $122.6 million in outstanding debentures had been tendered in the company's exchange offer to bondholders. The Office of Thrift Supervision required that no less than 90% of the bonds be tendered.

As a result of the exchange offer and restructuring of its principal subsidiary, California Federal Bank, the bank's capital will significantly exceed tangible, core, and risk-based regulatory requirements, effective Dec. 31.

The bank will also meet Federal Deposit Insurance Corp.'s definition of an "adequately capitalized" institution, CalFed said.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.