Cascade Bancorp in Bend, Ore., has been given another two weeks to find the additional capital its lead investors are requiring.
The $2.2 billion-asset company now has until Sept. 30 to raise $85 million of common stock through private placements alongside a $25 million investment by David F. Bolger, Cascade's largest shareholder, and $40 million from an affiliate of Donald Marron's Lightyear Capital LLC private-equity fund.
Cascade has been in talks with Bolger on the $25 million investment since April 2009. It entered into a definitive agreement with him last October when Lightyear joined the effort.
The agreements initially called for the total $150 million to be in place by May 31. They have been amended several times to postpone the deadline.
The company has said part of the delay has stemmed from its inability to persuade trust-preferred holders to exchange their bonds at a discount. Last month, Cascade sued Cohen & Co. Financial Management in federal court, alleging that it had failed to honor an agreement to accept $13.3 million of redeemable notes in exchange for the $66.5 million of trust-preferred securities that it holds.
As of June 30, Cascade's bank unit was undercapitalized, with a total risk-based capital ratio of 5.85%.
