FirstSun Capital Bancorp And HomeStreet Amend Merger Agreement; Increase In Firstsun's Total Equity Capital Raised In Connection With Merger Of Additional $45M-60M; Revised Ratio Which HomeStreet Shareholders Receive 0.3867 Shares
Portfolio Pulse from Benzinga Newsdesk
FirstSun Capital Bancorp and HomeStreet have amended their merger agreement, increasing FirstSun's total equity capital raised by an additional $45M-$60M, up to $235M. The exchange ratio for HomeStreet shareholders has been revised to 0.3867 shares of FirstSun common stock, valuing each share at $13.53. The termination fee for HomeStreet has been reduced to $2.6M plus expenses under certain conditions. Post-merger, the banking operations will be under a Texas state charter, with Sunflower Bank converting to a Texas state chartered bank and seeking Federal Reserve System membership. FirstSun will issue $48.5M of subordinated debt to support Sunflower Bank's capital, and HomeStreet will sell approximately $300M of its Commercial Real Estate loans post-merger.
April 30, 2024 | 9:39 pm
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NEUTRAL IMPACT
HomeStreet's amended merger agreement with FirstSun includes a revised exchange ratio and plans for the sale of Commercial Real Estate loans, which could impact its financial structure and focus post-merger.
The revised exchange ratio and the planned sale of Commercial Real Estate loans indicate a strategic shift in HomeStreet's financial structure. While the impact on the stock price is uncertain, these moves could streamline operations and focus post-merger.
CONFIDENCE 75
IMPORTANCE 75
RELEVANCE 80
POSITIVE IMPACT
FirstSun Capital Bancorp's amended merger agreement with HomeStreet includes an increase in equity capital, issuance of subordinated debt, and operational changes post-merger. These actions could strengthen its financial position and operational footprint.
The increase in equity capital and issuance of subordinated debt are likely to enhance FirstSun's financial stability and support its growth. The operational changes, including the conversion to a Texas state charter, could provide strategic advantages in the banking sector.
CONFIDENCE 80
IMPORTANCE 85
RELEVANCE 90