Company: OSBC
Filing Date: 2025-04-23
Form Type: S-4
Source: 0001104659-25-037832
Chunk: 62

Company: OLD SECOND BANCORP INC
Filing Date: 2025-04-23
Form: S-4
Chunk 62
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orp Financial, including the revised terms and the status of ongoing discussions.

Old Second then provided a further updated letter of intent, dated December 17, 2024, that provided for an updated purchase price of approximately $200.0 million, consisting of $50.0 million in cash, or $15.87 per share in cash, and the remainder in shares of Old Second common stock, based on a fixed exchange ratio of 2.5718 shares of Old Second common stock for each share of Bancorp Financial common stock. The updated purchase price represented approximately 133% of Bancorp Financial’s tangible book value, assuming Bancorp Financial common equity of $149.8 million as of November 30, 2024. Based on the closing price of Old Second’s common stock on December 12, 2024 of $18.51 per share, the proposed purchase price would consist of approximately 25% cash and 75% Old Second stock. The above purchase price, including the exchange ratio, was based on Bancorp Financial having 3,151,172 shares of common stock outstanding, and the above figures would be subject to adjustment based on any outstanding options,

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restricted stock or other equity-based employee compensation, the treatment of which was to be determined, as Old Second indicated that it was willing to cash out or assume such awards. In addition, the December 17, 2024 letter of intent that Old Second remained open to adding a Bancorp Financial representative to Old Second’s board of directors.

On December 18, 2024, Bancorp Financial’s board of directors reviewed and considered the December 17, 2024 letter of intent. During this meeting, the board and senior management engaged in an in-depth review of the terms of the updated letter of intent. After reviewing and discussing in detail the updated terms contained in the letter of intent, the board of directors determined that it was in the best interest of the company to execute the December 17, 2024 non-binding letter of intent and continue to negotiate the terms of a definitive agreement with Old Second.

Following execution of the December 17, 2024 letter of intent, each of Bancorp Financial and Old Second continued to engage in its respective due diligence review process. Over the next several weeks, Bancorp Financial provided Old Second’s executive team with additional confidential due diligence materials through a virtual data room. From mid-December 2024 through mid-January 2025