Sterling Financial Corp. in Spokane said Thursday it has completed a $730 million capital raise, including an expansion of its investments from two firms leading the recapitalization.
The $9.7 billion-asset company, which has acknowledged doubts about its viability, has lost nearly $1 billion in the past 18 months and needed to raise $725 million by Sept. 1 to comply with a regulatory order.
The company said the amount of capital raised exceeds the total required under Sterling's agreements with regulators and boosts capital ratios to levels that exceed "well-capitalized."
Warburg Pincus and Thomas H. Lee increased the amount they will invest in Sterling to a combined $342 million, for a stake of 45%.
