HomeStreet and FirstSun amend merger agreement; exchange ratio cut to 0.3867, capital raise increased to $235M

Mechanics Bancorp

Exchange ratio reduced from 0.4345 to 0.3867; implied value of $13.53 per HomeStreet share based on FSUN close.
Total equity capital raise increased by $45-60M to up to $235M; $80M already issued to Wellington Management.
HomeStreet to dispose of ~$300M in commercial real estate loans post-closing; FirstSun to issue $48.5M sub-debt.
Termination fee payable by HomeStreet cut to $2.6M from $10M if competing bid within 30 days after amendment.
Deal expected to close Q4 2024; Sunflower Bank to convert to Texas state charter, OCC application withdrawn.

Key facts

Extracted from this filing and checked against the source text.

Material Agreements SEC 8-K Item 1.01/1.02 confidence 0.9

Mechanics Bancorp amended Amendment No. 1 with FirstSun Capital Bancorp, a Delaware corporation, and Dynamis Subsidiary, Inc., a Washington corporation and wholly owned subsidiary of FirstSun (effective 2024-04-30).

Action: amendment
Agreement: merger
Counterparty: FirstSun Capital Bancorp, a Delaware corporation, and Dynamis Subsidiary, Inc., a Washington corporation and wholly owned subsidiary of FirstSun
Effective: 2024-04-30

Exact text from the filing

HomeStreet, Inc., a Washington corporation (“ HomeStreet ”), entered into Amendment No. 1 (the “ Amendment ”) to the Agreement and Plan of Merger, dated January 16, 2024 (the “ Merger Agreement ”), by and among HomeStreet , FirstSun Capital Bancorp, a Delaware corporation (“ FirstSun ”), and Dynamis Subsidiary, Inc., a Washington corporation and wholly owned subsidiary of FirstSun (“ Merger Sub ”).

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Mechanics Bancorp filing history →

Source: SEC EDGAR

accession 0001518715-24-000108

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