Waterbury-based Webster Bank, taking advantage of what it sees as an undervalued market for bank debt, today began buying up its $200 million in outstanding debt, offering 80 cents on the dollar plus interest.
The cash tender offer to holders of its 5.875 percent subordinated notes due 2013 expires on March 18.
Webster spokesman Ed Steadham said the bank is financing the debt repurchase using available cash and proceeds from the sale of securities in its portfolio.
“If successful, this offer will allow us to increase our tangible common equity,” Steadham said.
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At 11 a.m., Webster traded at $3.50, up 35 cents, or 11.1 percent.
