WATERBURY, Conn.--(BUSINESS WIRE)--July 28, 2004--Webster
Financial Corporation (NYSE:WBS), the holding company for Webster
Bank, N.A., announced today the formation of Webster Growth Capital, a
subsidiary of Webster Bank, N.A. Webster Growth Capital provides
mezzanine financing for small to middle-market companies.
Webster has named Randall Kutch president of Webster Growth
Capital, based in Hartford, Connecticut. Most recently, Kutch was a
managing director for mezzanine investments and growth equity
investments in middle-market companies for Citizens Capital. Before
that, he was a director for middle-market lending at BankBoston.
Webster Executive Vice President for Corporate Development Nat
Brinn said, "Under Randall Kutch's leadership, Webster will meet the
needs of small to middle-market companies requiring junior capital of
less than $10 million to finance growth, acquisitions and
recapitalizations. This underserved market provides an attractive
opportunity for Webster."
"Mezzanine financing is a logical extension of Webster's lending
capabilities," said Kutch. "While Webster Growth Capital (WGC) will
have its own identity, it will be is complementary to Webster's
existing lending activities. WGC will work with Webster's commercial
lenders to provide 'one-stop' shopping for leveraged transactions,
adding value for existing and future Webster customers. We will also
seek opportunities outside of the Webster Bank portfolio."
Brinn noted that Webster's retail and commercial banking footprint
is sizable, spanning from Westchester County, New York to southeastern
Massachusetts. WGC will be able to source transactions through a
diverse base of relationships, allowing Webster to build a portfolio
of subordinated loans.
"Webster can also utilize its national lending platforms, Center
Capital and Webster Business Credit, for deal sourcing," added Brinn.
"We expect significant portfolio growth over the next three to five
years, which will add shareholder value and strengthen our position as
the leading financial services provider headquartered in southern New
England."
Mezzanine capital is a form of junior capital, which is part of a
company's capital structure below the senior debt and above equity. A
hybrid of debt and equity, mezzanine capital is often structured as an
unsecured note, subordinate to all senior debt, and combined with a
detachable warrant or equity position in the issuing company.
Mezzanine capital is often used with private, middle-market companies
for acquisitions, growth or recapitalizations.
Kutch has 20 years experience in financing middle-market
companies. He began his career at Texas American Bancshares in Dallas
as a loan review officer. In 1987, Kutch moved to Boston to be a vice
president of Bank of New England. There, he managed commercial loans
and reviewed and rated loan portfolios as an internal examiner. Kutch
earned a Bachelor of Science in Business Administration, Finance and
Economics from Oklahoma State University and received an M.B.A. in
finance from Boston University.
Webster Financial Corporation is the holding company for Webster
Bank, National Association and Webster Insurance. With $17 billion in
assets, Webster provides business and consumer banking, mortgage,
insurance, financial planning, trust and investment services through
147 banking offices, 268 ATMs, telephone banking and the Internet.
Webster Bank owns the asset-based lending firm Webster Business Credit
Corporation, the insurance premium finance company Budget Installment
Corp., and Center Capital Corporation, an equipment finance company
headquartered in Farmington, Connecticut. For more information about
Webster, including past press releases and the latest Annual Report,
visit the Webster website at www.websteronline.com.
CONTACT: Webster Financial Corporation
Media:
Meghan Thompson, 203-578-2287
mthompson@websterbank.com
or
Investors:
Terry Mangan, 203-578-2318
tmangan@websterbank.com
SOURCE: Webster Financial Corporation