National Penn Bancshares Inc. in Boyertown, Pa., has announced the completion of a $150 million recapitalization with the private-equity firm Warburg Pincus.
The private-equity firm bought $63.3 million of National Penn common stock in October, when the deal was announced. Warburg invested another $86.7 million on Friday, for 14.3 million shares. It now owns a 16.4% stake in the $9.2 billion-asset company.
National Penn has said that the deal would accelerate plans to repay the Treasury Department funds invested under the Troubled Asset Relief Program.
When the deal was announced, National Penn said the sale would boost its tangible common equity ratio to 8.7%, from 7% at June 30, and increase the total risk-based capital ratio to more than 18%, from 14.9%. By terms of the agreement, Warburg bought 24.8 million shares of newly issued National Penn common stock at $6.05 a share.
