Business Context and Reporting Period
Western Alliance Bancorporation filed this Form 8-K on September 22, 2011, to report a material event regarding government funding. The Company is a Nevada corporation headquartered in Phoenix, Arizona.
Key Financial Metrics
This filing does not report standard financial performance metrics such as revenue, profit, cash flow, or margins. The primary financial data points disclosed are:
- Proposed SBLF Investment: Approximately $141.8 million in preferred stock from the U.S. Department of the Treasury.
- Existing TARP Obligation: $140 million in outstanding preferred stock issued under the TARP Capital Purchase Program.
Material Changes
The Company announced it received preliminary approval from the Treasury to participate in the Small Business Lending Fund (SBLF). The intended material change is the redemption of the existing $140 million TARP preferred stock using the proceeds from the new $141.8 million SBLF investment.
Outlook, Risks, and Contingencies
Contingencies: The preliminary approval is not a binding obligation. Final approval and the execution of a Securities Purchase Agreement are required before funds are transferred.
Timeline: The execution of the agreement and fund transfer are expected to occur on or before September 27, 2011.
Risks: The transaction is subject to the Treasury's sole discretion, due diligence, and the satisfaction of customary closing conditions.
Investor Verification Checklist
- Confirm the execution of the Securities Purchase Agreement by September 27, 2011.
- Verify the final closing of the $141.8 million SBLF investment.
- Monitor the successful redemption of the $140 million TARP preferred stock.
- Review any subsequent filings for changes in the terms of the SBLF preferred stock.