FirstSun Capital Bancorp, HomeStreet To Merge; Announces Equity Capital Raise

(RTTNews) - FirstSun Capital Bancorp, the holding company of Sunflower Bank, N.A. and HomeStreet, Inc. (HMST), the holding company of HomeStreet Bank, have entered into a definitive merger agreement. HomeStreet and HomeStreet Bank will merge with and into FirstSun and Sunflower Bank, respectively, with HomeStreet Bank continuing to operate under its tradename. The companies will combine in an all-stock deal in which HomeStreet shareholders will receive 0.4345 of a share of FirstSun common stock for each share of HomeStreet common stock which represents a value of $14.75 per share. The combined entity is anticipated to be listed on the NASDAQ.

FirstSun also has entered into investment agreements with investors to raise capital to support the merger, led by Wellington Management. In aggregate, $175 million of common stock will be issued to those investors, the company said. FirstSun will sell: approximately 2.46 million shares of its common stock at an issuance price of $32.50 per share at the announcement of the merger; and 2.92 million shares of its common stock at an issuance price of $32.50 per share at the closing.