Cascade Bancorp in Bend, Ore., said Monday that shareholders overwhelmingly approved a plan to sell common stock to a group of outside investors.
The $2 billion-asset company said in a filing with the Securities and Exchange Commission that 98% of voting shares authorized the sale of $177 million in common stock at a special meeting held last week. In November, the company agreed to sell stock to W.L. Ross & Co. and Leonard Green and Partners LP. Those groups would join David F. Bolger and Donald Marron's Lightyear Fund II in Cascade's recapitalization.
Cascade has been under a regulatory order to raise capital since August 2009. In November 2009, Lightyear and Bolger agreed to invest $65 million in the capital-strapped company on the condition that Cascade raise another $85 million by May 31.
The investments will boost the company's capital ratios to "well-capitalized" status, with a leverage ratio of more than 10%. Representatives from W.L. Ross, Lightyear and Leonard Green will join Cascade's board.
