October 16, 2009 (FinancialWire) — Webster Financial Corp. (NYSE: WBS) said that Warburg Pincus has completed a $115 million investment in the bank holding company. Warburg invested $40.2 million on July 27, 2009 and has now invested the remaining $74.8 million in Webster to purchase newly issued common stock at $10 per share, non-voting perpetual participating preferred stock, and warrants.

Warburg Pincus bought 3 million shares of common stock and 44,570 shares of non-voting perpetual participating preferred stock that, following the receipt of shareholder approval, will convert into 4.5 million shares of common stock.

The company also bought 6.8 million seven-year A-warrants, series 2, which initially have a strike price of $10 per share, with the strike price increasing to $11.50 per share on October 15, 2011 and to $13.00 per share on October 15, 2013. The deal includes 4.3 million seven-year B-warrants, series 2 with a strike price of $2.50 per share, which will only become exercisable and transferable if shareholder approval is not received by February 28, 2010.

The B-warrants, Series 2 will expire immediately upon receipt of shareholder approval.

Waterbury, Connecticut-based Webster Financial is the holding company for Webster Bank, National Association, which operates through 181 banking offices, 492 ATMs, telephone banking and the internet.

New York-based Warburg Pincus is a global private equity firm with more than $25 billion in assets under management. Its active portfolio of more than 100 companies.

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