Read more: FirstSun, HomeStreet revise merger terms, boost capital raise
The stock exchange ratio has been adjusted to 0.3867 shares of FirstSun common stock for each HomeStreet share. This values each HomeStreet share at $13.53, based on FirstSun’s closing price as of April 29.
Additionally, the termination fee HomeStreet would pay if it accepts a competing acquisition proposal within 30 days post-amendment has been reduced to $2.6 million. This fee also includes covering FirstSun’s transaction fees and expenses.
As part of the merger, FirstSun will transition its subsidiary, Sunflower Bank, from a national bank to a Texas state-chartered bank. The merged entity will operate under a Texas state charter and seek membership in the Federal Reserve System. To bolster Sunflower Bank’s capital, FirstSun will issue $48.5 million in subordinated debt.
Meanwhile, HomeStreet will begin disposing of or selling about $300 million in specific commercial real estate loans.
