Company: MCHB
Filing Date: 2025-07-15
Form Type: S-4/A
Source: 0001140361-25-025920
Chunk: 69

Company: Mechanics Bancorp
Filing Date: 2025-07-15
Form: S-4/A
Chunk 69
---
 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; |

| • | restrict the combined company from making strategic acquisitions or cause the combined company to make non-strategic divestitures; |

| • | restrict the combined company from paying dividends to its shareholders; |

| • | increase the combined company’s vulnerability to general economic and industry conditions; and |

| • | require a substantial portion of cash flow from operations to be dedicated to the payment of principal and interest on the combined company’s indebtedness, thereby reducing the combined company’s ability to use cash flows to fund its operations, capital expenditures and future business opportunities. |

HomeStreet and Mechanics will be subject to business uncertainties and contractual restrictions in the merger agreement while the merger is pending. Uncertainty about the effect of the merger on employees and customers may have an adverse effect on HomeStreet and Mechanics. These uncertainties may impair HomeStreet’s or Mechanics’ ability to attract, retain and motivate key personnel until the merger is completed, and could cause customers and others that deal with HomeStreet or Mechanics to seek to change existing business relationships with HomeStreet or Mechanics. Subject to certain exceptions, HomeStreet has agreed to operate its business in the ordinary course in all material respects