Company: MCHB
Filing Date: 2025-07-03
Form Type: S-4
Source: 0001140361-25-024872
Chunk: 203

Company: Mechanics Bancorp
Filing Date: 2025-07-03
Form: S-4
Chunk 203
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 board.

In May 2023, HomeStreet management in conjunction with the HomeStreet board began evaluating potential strategic alternatives for HomeStreet. On May 25, 2023, the HomeStreet board met with and instructed KBW to prepare a process that would position KBW to assist HomeStreet with a variety of potential transactions, and the HomeStreet board then authorized the formation of a joint special committee of HomeStreet (the “HomeStreet special transaction committee”) to (i) consider and evaluate strategic alternatives and (ii) potentially recommend to the full HomeStreet board for approval of such strategic alternative transaction or transactions.

Through the months of July, August, September, October and November 2023, representatives of KBW, acting at the direction of HomeStreet, contacted several private equity funds and banks with respect to HomeStreet’s exploration of strategic alternatives. KBW also responded to unsolicited inquiries it received from institutions interested in exploring transactions with HomeStreet. During this time, HomeStreet entered into confidentiality agreements (“NDAs”) with twenty-four parties (including Mechanics), each of which had terms between one and two years. The NDAs contained, among other things, a customary standstill provision (which included a customary “don’t ask, don’t waive” clause and was subject to customary fall-away periods, including following the end of the applicable one- to two-year period). On August 28, 2023, HomeStreet and Mechanics entered into an NDA (the “original Mechanics NDA”). The original Mechanics NDA contained, among other things, a customary standstill provision (which included a customary “don’t ask, don’t waive” clause, subject to exceptions for confidential requests, and was subject to customary fall-away periods).

From November 2023 through January 2024, HomeStreet received offers and revised offers from four potential acquirers, including Mechanics. On January 12, 2024, the HomeStreet board held a special meeting to consider the negotiated terms of a proposed transaction with three of the potential acquirers, one of which was Mechanics. Mechanics offered aggregate consideration of $295 million in cash. After extensive consideration and deliberation that included input from HomeStreet’s legal and financial advisors, the HomeStreet board decided not to move forward with Mechanics’ offer and authorized HomeStreet management to execute an LOI with a different bidder, FirstSun Capital Bancorp (“FirstSun”). Between January 12, 2024 and January 16, 2024, HomeStreet and FirstSun and representatives of their respective