Company: MCHB
Filing Date: 2025-07-16
Form Type: 424B3
Source: 0001140361-25-026051
Chunk: 201

Company: Mechanics Bancorp
Filing Date: 2025-07-16
Form: 424B3
Chunk 201
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. Webb.

On February 1, 2025, representatives of Mechanics sent a revised proposal to KBW, who provided such proposal to Mr. Mason and the HomeStreet board.

On February 3, 2025, representatives of Mechanics sent Mark Mason, on behalf of the HomeStreet board, and a representative of KBW a revised letter of intent (the “revised LOI”). The revised LOI was identical to the LOI with respect to the proposed structure of the transaction and the proposed exchange ratio. The revised LOI added that Mechanics would enter into a consulting agreement with Mr. Mason, consistent with Mechanics’ proposal from January 2024. The revised LOI required HomeStreet to enter into exclusive negotiations with Mechanics for forty-five days from the date on which HomeStreet countersigned the revised LOI.

On February 4, 2025, the HomeStreet special transaction committee held a meeting. Advisers from KBW and S&C attended the meeting. At the meeting, representatives of KBW discussed that the revised LOI proposed the same exchange ratio for the benefit of HomeStreet shareholders as the initial LOI. Representatives of KBW discussed the fact that no further third parties interested in a potential acquisition of HomeStreet or similar strategic transaction had been identified and, in its view, no other viable acquirer was likely to emerge or otherwise be identified in the near future and if they did not enter into a transaction as provided in the revised LOI, HomeStreet, HomeStreet Bank, and HomeStreet’s shareholders would remain subject to the risks of a standalone company. Representatives of KBW and the HomeStreet board agreed that the economics and other terms of Mechanics’ revised LOI were reasonable. The HomeStreet special transaction committee unanimously determined to recommend the revised LOI to the full HomeStreet board for its approval.

On February 5, 2025, the HomeStreet board held a special meeting, which was attended by advisers from KBW and S&C. At the meeting, representatives of KBW advised the HomeStreet board that the revised LOI proposed the same exchange ratio for the benefit of HomeStreet shareholders as the initial LOI and that Mechanics’ position, based on KBW’s market check and professional judgment, was not unreasonable. KBW added that no other parties had provided an offer at this time and that the revised LOI was, in KBW’s view, the highest and best offer HomeStreet was likely to receive from Mechanics. After delivering a report regarding the proceedings of the HomeStreet special transaction committee meeting held