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The Firm represented Washington Mutual in its $7.2 billion issuance of common stock, mandatory convertible preferred stock (which will convert into common stock following a shareholder vote) and warrants to TPG Capital and other investors, announced on April 7. The offering, which was equal to nearly 75% of Washington Mutual’s pre-announcement market capitalization, will enable the company to maintain its capital ratios at well above target levels through the periods of elevated credit losses expected for this year and next.
The Simpson Thacher team for the Washington Mutual transaction included Lee Meyerson, Maripat Alpuche, Elizabeth Cooper, Ellen Rosenberg, Nomaan Raja, Daniel Tseng, Kelly Jin and Jim Thompson (M&A); Steve Todrys and Sean Austin (Tax); Wonda Joseph and Eric Sarabia (Benefits); and Scott Fisher, Won Sun Jung and Daniel Kay (Securities).
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The Firm represented Wachovia Corporation in its $8.05 billion offering of common stock and non-cumulative perpetual convertible preferred stock, announced on April 14. The Wachovia offerings were intended to strengthen the company’s capital ratios during a period of adverse conditions in the residential real estate markets.
The Simpson Thacher team for the Wachovia transaction included Lee Meyerson, Lesley Peng, Ellen Smiley and Courage Otaigbe (Corporate); Marcy Geller and Jason Volbracht (Tax); and Jamin Koslowe and Eric Sarabia (Benefits).
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The Firm represented JPMorgan Chase in its $6 billion offering of non-cumulative perpetual preferred stock, announced on April 16. To read more about the transaction, click here.
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The Firm represented the lead investor, Corsair Capital, in a $7 billion capital raise for National City Corporation, announced on April 21. Similar to the Washington Mutual transaction, the issuance included common shares, mandatory convertible preferred stock (which will convert into common stock following a shareholder vote) and warrants. Corsair Capital is a private equity firm with a long-term focus on investing in the financial services industry, particularly the banking sector. Dick Thornburgh, a vice chairman of Corsair Capital, will join the National City board.
The Simpson Thacher team for the National City transaction included Lee Meyerson, Ellen Patterson, Anthony Vernace, Karl Koenen, Jordan Bleicher and Yueting Liang (M&A); Barry Covit, Bryan McGee and James Thompson (Private Funds); Steve Todrys and Sean Austin (Tax); Gary Rice (Bank Regulatory); and Jonathan Youngwood and Felicia Gordon (Litigation).
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The Firm represented Lehman Brothers and the other underwriters in connection with a $304 million public offering of common stock (before exercise of the overallotment option) of The Colonial BancGroup, Inc., a regional bank holding company headquartered in Alabama.
The Simpson Thacher team for the Colonial offering included Walt Looney, Lee Meyerson, Thomas Wedeles, Young Sohn and Lia Toback (Corporate); Jonathan Cantor and Jeffrey Graff (Tax); and Jamin Koslowe and Jarrett Hoffman (Benefits).