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WEBSTER FINANCIAL CORPORATION COMPLETES $40 MILLION SENIOR NOTE OFFERING

 WATERBURY, Conn., June 29 /PRNewswire/ -- Webster Financial Corporation (NASDAQ: WBST) today completed a $40 million registered offering of 8 3/4 percent Senior Notes due 2000. Webster Financial Corporation has assets of $2.1 billion and is the holding company for First Federal Bank, a federal savings bank with 32 offices in Connecticut.
 In response to investor interest, the company elected to receive the $40 million maximum offering amount. The minimum offering amount was $25 million. Purchasers in the offering were primarily institutional investors for amounts in excess of $1 million. Merrill Lynch & Co. was the exclusive selling agent for Webster in the offering.
 Webster is using $18.25 million of the proceeds of the offering to redeem today the remaining shares of Series A perpetual preferred stock issued by the corporation to the FDIC in October 1992 in connection with First Federal Bank's acquisition of most of the assets and all of the deposits of the former First Constitution Bank in an FDIC assisted transaction. The $20.55 million balance of the net proceeds will be initially invested at the holding company level and be used for general corporate purposes. First Federal Bank is considered to be a "well capitalized institution" and exceeds all regulatory capital requirements, without use of any of the net proceeds to increase its capital.
 James C. Smith, president and chief executive officer of Webster and First Federal Bank said, "This offering, with the redemption of the remaining preferred stock issued to the FDIC, is the final portion of the corporation's capital plan relative to the First Constitution acquisition. The plan included the initial FDIC $30 million preferred stock investment in Webster, the redemption of $11.75 million of the FDIC preferred stock investment with half of the net proceeds from a convertible preferred stock registered offering in December 1992 and, finally, the full redemption of the FDIC preferred stock investment with a portion of the proceeds of this registered debt offering. We are pleased to have received the maximum amount in this offering. With the 8 3/4 percent interest rate on these seven year Senior Notes, the corporation will be saving approximately $600,000 per year by redeeming the $18.25 million in preferred stock as compared to the after tax interest costs on the same amount of Senior Notes."
 -0- 6/29/93
 /CONTACT: James C. Smith or John V. Brennan, both of Webster Financial Corporation, 203-578-2214/
 (WBST)


CO: Webster Financial Corporation ST: Connecticut IN: FIN SU: OFR

DJ -- NE009 -- 6773 06/29/93 14:30 EDT
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Publication:PR Newswire
Date:Jun 29, 1993
Words:425
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