Wall Street equity investor Warburg Pincus has put up the remaining $74.8 million to finalize its previously announced stake in the Waterbury parent of Webster Bank.
Warburg put $40.2 million into Webster in July as a down payment on its $115 million investment in the regional bank.
In exchange, Webster handed Warburg 3 million shares of common stock valued at $10 a share, plus 44,570 shares of non-voting participating preferred stock that converts to 4.5 million shares of common once Webster shareholders bless the deal.
In addition, Warburg got 7-year warrants that it can convert to another 6.8 million shares, if shareholders approve by Feb. 28, 2010, at prices of $10 and $11.50 a share.
As part of the deal, former BankAmerica CEO David A. Coulter, a Warburg Pincus managing director, is expected to join Webster’s nine-member board.
