Company: MCHB
Filing Date: 2025-07-03
Form Type: S-4
Source: 0001140361-25-024872
Chunk: 70

Company: Mechanics Bancorp
Filing Date: 2025-07-03
Form: S-4
Chunk 70
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 or Mechanics. If the merger is not completed for any reason, including as a result of HomeStreet shareholders’ failure to approve the HomeStreet articles amendment proposal or the HomeStreet share issuance proposal or Mechanics shareholders’ failure to approve the Mechanics merger proposal by written consent, there may be various adverse consequences and HomeStreet and/or Mechanics may experience negative reactions from the financial markets and from their respective customers and employees. For example, HomeStreet’s or Mechanics’ respective businesses may be adversely impacted by the failure to pursue other beneficial opportunities due to the focus of management on the merger, without realizing any of the anticipated benefits of completing the merger. Additionally, if the merger agreement is terminated, the market price of HomeStreet common stock could decline, including to the extent that current market prices reflect a market presumption that the merger will be completed. HomeStreet and/or Mechanics could also be subject to litigation related to any failure to complete the merger, including litigation seeking to force HomeStreet and/or Mechanics to perform their respective obligations under the merger agreement. If the merger agreement is terminated under certain circumstances, including certain circumstances involving alternative acquisition proposals and changes in the recommendation of the HomeStreet board of directors, HomeStreet may be required to pay a termination fee of $10 million to Mechanics. Additionally, each of HomeStreet and Mechanics has incurred and will incur substantial expenses in connection with the completion of the transactions contemplated by the merger agreement, as well as the costs and expenses of preparing, filing, printing and mailing this proxy statement/prospectus/consent solicitation statement, and all filing and other fees paid in connection with the merger. If the merger is not completed, HomeStreet and Mechanics would have to pay these expenses without realizing the expected benefits of the merger. In connection with the merger, the combined company will assume or continue to be responsible for both HomeStreet’s and Mechanics’ outstanding debt obligations. The combined company’s level of indebtedness following the completion of the merger could adversely affect the combined company’s ability to raise additional capital or to meet its obligations. Upon the closing of the merger, the combined company will assume or continue to be responsible for the outstanding indebtedness of both HomeStreet and Mechanics. The combined company’s debt, together with any future incurrence of additional indebtedness, could have important consequences for the combined company’s creditors and the combined company’s shareholders. For example, it could:

| • | limit the combined company’s ability to obtain additional financing for working capital, capital expenditures, debt service requirements, acquisitions and general corporate or other purposes; |

| •