WATERBURY, Conn., June 11 /PRNewswire-FirstCall/ -- Webster Financial Corporation , the holding company for Webster Bank, N.A., today announced that it sold $225 million aggregate liquidation preference of non-cumulative perpetual convertible preferred stock related to the public offering announced on June 5, 2008. Proceeds to Webster from the offering will be reduced by underwriting discounts and expenses.
"The successful public sale of capital reflects the confidence investors place in Webster's balance sheet strength and growth potential," said James Smith, chairman and chief executive officer. "With this capital raise, Webster's already strong capital position is significantly enhanced. Webster has chosen to raise capital given our belief that a fortress balance sheet is a valuable asset in today's uncertain economic environment. This capital will support our growth as New England's bank and further protect us against the unforeseen in today's volatile and uncertain markets."
Webster's capital ratios, which were already substantially above the regulatory requirements for well-capitalized banks, have been further enhanced by the offering. Webster's resulting estimated ratios as of March 31, 2008 are 12.9 percent total risk-based capital, 10.5 percent tier I risk-based capital, and 9.2 percent tier I leverage capital, compared to regulatory requirements for well-capitalized banks of 10 percent total risk-based capital, 6 percent tier I risk-based capital and 5 percent tier I leverage capital.
Merrill Lynch & Co. acted as the sole book-running manager for the offering, and JPMorgan and Sandler O'Neill + Partners, L.P. acted as co-managers of the offering.
This news release shall not constitute an offer to sell or a solicitation of an offer to buy, nor shall there be any sales of these securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities law of any such state or jurisdiction.
The preferred stock was issued pursuant to an effective shelf registration statement. The offering was made only by means of a prospectus supplement and accompanying prospectus, final copies of which may be obtained from Merrill Lynch & Co., Attn: Prospectus Department, 4 World Financial Center, New York, New York 20080 (telephone: 212-449-1000).
Webster Financial Corporation is the holding company for Webster Bank, National Association. With $17.2 billion in assets, Webster provides business and consumer banking, mortgage, financial planning, trust and investment services through 181 banking offices, 484 ATMs, telephone banking and the Internet. Webster Bank owns the asset-based lending firm Webster Business Credit Corporation, the insurance premium finance company Budget Installment Corp., Center Capital Corporation, an equipment finance company headquartered in Farmington, Connecticut and provides health savings account trustee and administrative services through HSA Bank, a division of Webster Bank. Member FDIC and equal housing lender. For more information about Webster, including past press releases and the latest annual report, visit the Webster website at http://www.websteronline.com/.
Forward-looking Statements
Certain statements contained in this release may include forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are based upon specific assumptions that may or may not prove correct. Forward-looking statements are also subject to known and unknown risks, uncertainties and other factors relating to the Company's and the Bank's operations and business environment, all of which are difficult to predict, and many of which are beyond the control of the Company and the Bank. The factors include, among others: economic and business conditions in the areas and markets in which the Company and the Bank operate, particularly those affecting loans secured by real estate; deterioration or improvement in the ability of the Bank's borrowers to pay their debts to the Bank; market fluctuations such as those affecting interest and foreign exchange rates and the value of securities in which the Bank invests; competition from other financial institutions, whether banks, investment banks, insurance companies or others; the ability of the Bank to assimilate acquisitions, enter new markets and lines of business, and open new branches, successfully; changes in business strategies; changes in tax law and governmental regulation of financial institutions; demographic changes; and other risks and uncertainties, including those discussed in the documents the Company files with the Securities and Exchange Commission ("SEC"). The foregoing may cause the actual results and performance of the Company and the Bank to be materially different from the results and performance indicated or suggested by the forward-looking statements. Further description of the risks and uncertainties are included in detail in the Company's current, quarterly and annual reports, as filed with the SEC.
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