Simpson Thacher Represents East West Bancorp in Connection with FDIC-Assisted Acquisition and Capital Raise
11.10.09
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Simpson Thacher is representing East West Bancorp, Inc. (“East West”) in connection with the acquisition of the banking operations of United Commercial Bank from the Federal Deposit Insurance Corporation. On November 6, 2009, United Commercial Bank was closed by the government, the FDIC was appointed receiver and the acquisition of its banking operations by East West Bank (East West’s banking subsidiary) was consummated. Under the terms of the transaction, East West Bank has acquired approximately $10.4 billion in assets, including $7.7 billion in loans, and assumed $9.2 billion in liabilities, including $6.5 billion in deposits of United Commercial Bank. East West Bank also acquired the Chinese bank subsidiary and the Hong Kong branch of United Commercial Bank. As part of the transaction, the FDIC and East West Bank have entered into a loss sharing agreement covering substantially all acquired loans.
Simpson Thacher is also representing East West in connection with a $500 million capital raise through the issuance of shares of common stock and mandatorily convertible preferred stock (which will convert into common stock following a stockholder vote). The capital raise also closed on November 6, 2009.
The Simpson Thacher team includes Lee Meyerson, Ellen Patterson, Anthony Vernace and Philip Russ (M&A); Gary Rice and Mark Chorazak (Bank Regulatory); Gary Mandel and Jonathan Goldstein (Tax); and Greg Grogan and Eric Sarabia (Executive Compensation & Employee Benefits).