Sterling Financial reaches deal with feds

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By Associated Press

Summary

In a complicated plan months in the making, the Treasury would accept a steep markdown on the $303 million that it invested in Sterling only 15 months ago.

Story Published: Mar 17, 2010 at 11:07 AM PST

Story Updated: Mar 17, 2010 at 11:07 AM PST

SPOKANE (AP) - Sterling Financial Corp. of Spokane has reached a tentative deal with the U.S. Treasury and a potential investor in its battle for survival.

In a complicated plan months in the making, the Treasury would accept a steep markdown on the $303 million that it invested in Sterling only 15 months ago.

The company would raise an additional $650 million in capital from new investment. Sterling would also repurchase $238 million in trust-preferred securities for which it is offering 20 cents per $1 face value.


(Copyright 2010 by The Associated Press. All Rights Reserved.)

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