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Private-equity firm Warburg Pincus will invest $150 million in National Penn Bancshares Inc. for a 16.4 percent stake in the operator of banks in Pennsylvania and elsewhere.
National Penn said Wednesday Warburg Pincus will buy 24.8 million newly issued common shares at $6.05 per share. It will pay for its initial investment of $63.3 million within 10 days and then pay for the rest of the investment after regulators approve the deal. That should come in the fourth quarter.
Bank CEO Scott V. Fainor said the extra money will speed up its repayment to the U.S. Treasury for its TARP investment, among other things.
The company said as part of the deal, Michael E. Martin, managing director and co-head of Warburg Pincus' Financial Services group, will join the bank's board. He will serve an initial term through April 2013.
Sandler O'Neill & Partners LLP served as financial adviser while National Penn's legal counsel was Reed Smith LLP.
Shares of National Penn rose 11 cents to $6.48 in afternoon trading Wednesday.