June 3, 2011 / 12:54 PM / 7 years ago

UPDATE 1-Treasury says to raise $20.4 mln on Webster warrants

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WASHINGTON, June 3 (Reuters) - The U.S. Treasury Department on Friday said it expected to raise $20.4 million from the sale of 3.3 million warrants to purchase shares of Webster Financial Corp (WBS.N), shedding its remaining investment in the company.

“These proceeds provide an additional return to the American taxpayers from Treasury’s investment in the company beyond the dividend payment it received on the related preferred stock,” Treasury said in a statement.

The warrants were priced at $6.30 each, above the minimum bid price of $5.50 per warrant set by Treasury.

The Waterbury, Connecticut-based company had received $400 million in 2008 under the U.S. government’s bailout program.

    In December, Webster used the proceeds of a share sale to buy back the remaining $200 million of preferred shares issued to the U.S. Treasury as part of the government’s financial bailout program.

    Reporting by Doug Palmer; Editing by Chizu Nomiyama

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