National Penn Bancshares in Allentown, Pa., has agreed to repurchase $75 million of its common stock held by Warburg Pincus.
The $9.8 billion-asset company said in a press release late Wednesday that it will buy back roughly 7.3 million shares of stock at $10.25 each. That equals about 40% of the shares held by the private equity firm, which will still have an 8.3% stake once the stock has been sold back to National Penn.
"Since our initial investment in 2010, we have been pleased with National Penn's management team and its ability to generate shareholder value," Michael Martin, managing director and head of Warburg Pincus' financial services group, said in the release. "We continue to support the company and we look forward to participating in its future success."
Warburg Pincus invested about $150 million in National Penn between October 2010 and January 2011, gaining a 16.4% stake in return. National Penn, which used some of the funds to exit the Troubled Asset Relief Program, bought back $75 million in stock from Warburg Pincus in early 2014 for $10.77 a share.