Webster Financial Corp. in Waterbury, Conn.,is raising capital to pay off the balance of the Treasury Department's investment under the Troubled Asset Relief Program.
The $17.8 billion-asset company said Monday that it has commenced a public offering to sell 6.6 million shares of common stock. It plans to use the net proceeds from the offering, plus available funds, to repurchase the remaining $200 million of preferred stock that it issued the Treasury in December 2008.
Webster said Warburg Pincus and one of its affiliates, each existing shareholders, have agreed to purchase nearly 2.1 million shares of common stock. The company did not disclose a sale price.
Webster received a $400 million investment through the Capital Purchase Program. It repaid $100 million March, and another $100 million in October, through retained earnings.