Webster Financial Corp. said Tuesday that it plans to raise $156.6 million to help pay off its Troubled Asset Relief Program funding.
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The Waterbury, Conn., banking company said it would sell stock at $18 a share, a 2.6% discount to Monday's closing price.
Webster, which announced the capital-raise Monday, plans to sell 6.6 million shares of common stock in a public offering. Warburg Pincus and one of its affiliates, each an existing stockholder, have agreed to buy an additional 2 million shares at the same price.
The company said it will use the net proceeds of the offering, plus additional available funds, to redeem the remaining $200 million of preferred stock held by the Treasury Department under its Capital Purchase Program.
