Cascade Bancorp (Oregon) Announces Agreements For $177 Million Capital Raise
BEND, Ore., Nov. 16, 2010 /PRNewswire-First Call/ -- Cascade Bancorp (Nasdaq: CACB) (the "Company") announced today that it has entered into Securities Purchase Agreements for the purchase and sale of approximately $177 million of shares of its common stock ("Common Stock"). Private placement investors who have entered into separate agreements with the Company include, among others: David F. Bolger ("Mr. Bolger"), an affiliate of Lightyear Fund II, L.P. ("Lightyear"), private equity funds affiliated with Leonard Green & Partners, L.P. (" Leonard Green" or "LGP") and private equity funds affiliated with WL Ross & Co. LLC ("WL Ross").
Patricia L. Moss, Chief Executive Officer of Cascade Bancorp, commented, "We are pleased that, after closing of the transactions contemplated by the Securities Purchase Agreements, our capital ratios will notably exceed regulatory agency benchmarks for a 'well-capitalized' bank. Upon closing, not only will Cascade Bancorp's strong pro forma capital ratios place the Company among the best capitalized community banks in the nation, the Bank will also exceed the 10% leverage ratio required by our regulatory order. This investor vote of confidence in our company and the communities we serve will provide the financial strength to sustain our market position as a premier local bank serving customers in the communities of Oregon and Idaho."
Moss continued, "For the past eighteen months we have focused our strategies and efforts on improving our capital position, reducing risk in the loan portfolio and positioning ourselves for a future of serving the financial needs of our customers. We are pleased with the deep industry knowledge that our high-quality lead investors -- WL Ross, Leonard Green, Lightyear, and Mr. Bolger -- bring to the Company. As we reflect on these challenging times, we are energized and inspired by our loyal customers whose support has been integral to our success in this capital raise. We remain committed to delivering ongoing value to our customers as we reinforce the value of community banks in fueling a return to economic health."
The following provides additional detail as to the capital raise transaction:
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