Davis Polk & Wardwell LLP advised Sterling Financial Corporation in connection with its $730 million recapitalization transactions, which included preferred and common stock investments by private equity firms Thomas H. Lee Partners, L.P. and Warburg Pincus Private Equity X, L.P. and other accredited investors and an exchange transaction with the U.S. Treasury for its TARP preferred securities.

Sterling Financial is headquartered in Spokane, Washington, and is the bank holding company for Sterling Savings Bank, a state chartered and federally insured commercial bank. Sterling offers banking products and services, mortgage lending, construction financing and investment products to individuals, small businesses, commercial organizations and corporations.

The Davis Polk corporate team included partners John L. Douglas, Margaret E. Tahyar, John H. Butler, Sarah K. Solum and Paul R. Kingsley, and associates Sapna Dutta, Caroline J. Perry, Johannes Wirtz, Pengyu Jeff He, Rahael Seifu, Joey J. Hipolito, Brandon Smith and Brian L. Friedman. The tax team included partner Kathleen L. Ferrell and associates Joshua Ruland, Niya Tang and William A. Curran (not yet admitted). Partner Barbara Nims and associate Bernice A. Grant provided benefits advice. Members of the Davis Polk team are based in the New York and Menlo Park offices.