The bank announced yesterday (8 April) that it has secured additional capital totaling $7bn through the sale of equity securities to investors including buy-out house TPG Capital.
Simpson Thacher & Bartlett advised Washington Mutual, while Cleary Gottlieb Steen & Hamilton acted for TPG – formerly Texas Pacific Group – which is purchasing shares worth $5bn (£2.5bn).
The Cleary Gottlieb team included New York-based corporate and private equity partners Michael Ryan, Benet O’Reilly and Paul Shim, with additional support from the firm’s
Skadden Arps Slate Meagher & Flom also bagged a role on the cash injection, representing arrangers Goldman Sachs and Lehman Brothers.
New York-based corporate finance partner Gregory Fernicola and William Rubenstein, co-head of the firm’s financial institutions M&A group, led for Skadden.
The fundraising comes with Washington Mutual expected to announce first-quarter losses of around $1.1bn (£550m) as a result of the
Washington Mutual chairman Kerry Killinger said: “This substantial new capital… will position us for a return to profitability as these elevated credit costs subside. With the support of these investors, we have every confidence in our ability to deal with today's market conditions and restore shareholder value.”