(Reuters) – Sterling Financial Corp (STSA.O) said Boston-based Thomas H. Lee Partners L.P. (THL) agreed to invest $134.7 million in the company, as the company posted a quarterly loss and its shares fell 25 percent.
The investment is contingent on the company’s converting $303 million of preferred stock held by the U.S. Treasury into common shares, Sterling said in a statement.
The closing condition for both deals will depend on Sterling’s raising at least $720 million, including the THL investment, and meeting regulatory capital requirements.
Sterling posted a first-quarter net loss of $88.8 million, or $1.71 a share, including an $88.6 million provision for credit losses.
In the year-earlier quarter, the company posted a net loss of $24.8 million, or 48 cents a share, including a $65.9 million provision for credit losses.
Shares of the company fell 27 percent to $1.15 in early dealings on Nasdaq. (Reporting by Anurag Kotoky in Bangalore; Editing by Mike Miller)