Sterling, investors close financing deal
Sterling Savings Bank's Moses Lake branch. The company and investors closed a $730 million deal Thursday to raise new capital and help Sterling rebuild.
SPOKANE — Sterling Financial Corporation and its investors closed a $730 million deal Thursday to generate more capital for the company.
The agreement with Thomas H. Lee Partners, L.P., and Warburg Pincus Private Equity is intended to help the company rebuild.
“The successful completion of this capital raise helps position Sterling as a premier community banking franchise in the Pacific Northwest,” stated Greg Seibly, Sterling’s president and chief executive officer.
“Our investors have shown confidence in Sterling’s value proposition and our ability to execute our strategic plan to create a strong relationship-oriented bank,” he added in part.
Sterling Financial Corporation is the bank holding company for Sterling Savings Bank, which has FDIC-insured banking locations throughout the Northwest.
There are local branches in Moses Lake, Othello and Coulee City.
In March, the U.S Treasury said it would help the Sterling rebuild by converting Treasury-held Sterling shares into common stock.
But first, Sterling was required to raise $650 million in capital. The money is needed because the bank was impacted by non-performing loans in commercial real estate and residential real estate.