Webster Financial Corp. of Waterbury, Conn., is getting a $115 million infusion from the private-equity firm Warburg Pincus LLC.
The $17.5 billion-asset Webster said Monday that Warburg's investment would be split into two parts as Webster awaits approval of antitrust and bank regulators.
For starters, Warburg would invest $40.2 million by buying 4 million shares of common stock at $10 per share, with 3 million in warrants, also initially valued at $10 per share.
The $10 per share price is 1.04 times Webster's closing price on Friday.
Should the company receive all the required approvals from regulators and investors, Warburg's investment would give it 15.2% ownership in the common stock outstanding.
After approvals, the remaining $74.8 million investment would be made through common stock, warrants and junior nonvoting preferred stock, which would convert to common equity after shareholder approval.
The infusion follows Webster's move to boost common equity last quarter by exchanging preferred stock and trust-preferreds into common equity, taking the company's tangible common equity ratio from 4.05% at the end of the first quarter to 4.92% at June 30.
"The additional capital will enable us to capitalize on the extraordinary banking opportunities in the market as we pursue our vision to be New England's bank," James C. Smith, Webster's chairman and chief executive, said in a press release.