Company to sell stock at $6.05 per share to investor Warburg Pincus
By Devika Patel
Knoxville, Tenn., Oct. 6 - National Penn Bancshares Inc. will sell 24,793,389 shares in a direct placement, according to an 8-K filed Wednesday with the Securities and Exchange Commission. Warburg Pincus is the investor. The offering priced Oct. 5.
The company will raise $150 million by selling the common shares at $6.05 each, which approximates the average closing price of the stock over the last 30 days and is a 2.1% discount to the Oct. 4 closing share price of $6.18.
During an investor call held Wednesday, the company said that the price per share represented an "'at the market' price on a 30-day trailing average."
"We believe the incremental capital will accelerate our ability to repay the U.S. Treasury for its TARP investment in us," president and chief executive officer Scott V. Fainor said in a press release.
As part of the transaction, Michael E. Martin, managing director and co-head of Warburg Pincus' financial services group, will join National Penn's board of directors.
The company will receive an initial investment from Warburg Pincus totaling $63.3 million - or less than 9.9% ownership - and said that the remaining portion was subject to regulatory approval.
National Penn expects the final closing to take place during the fourth quarter. Upon completion, Warburg Pincus will hold a 16.4% stake in the company.
Additionally, the company said all of its capital ratios would be improved by the investment.
Located in Boyertown, Pa., National Penn Bancshares is the holding company for National Penn Bank.
Stephanie N. Rotondo contributed to this report
| Issuer: | National Penn Bancshares Inc.
|
| Issue: | Common stock
|
| Amount: | $150 million
|
| Shares: | 24,793,389
|
| Price: | $6.05
|
| Warrants: | No
|
| Investor: | Warburg Pincus
|
| Pricing date: | Oct. 5
|
| Stock symbol: | Nasdaq: NPBC
|
| Stock price: | $6.37 at close Oct. 5
|
| Market capitalization: | $813.31 million
|
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