HomeStreet, Inc. (Nasdaq: HMST) (the “Company” or “HomeStreet”),
the parent company of HomeStreet Bank, today announced the pricing
of its public offering of $100 million aggregate principal amount
of its 3.50% Fixed-to-Floating Rate Subordinated Notes due 2032
(the “Notes”). The price to the public for the Notes is 100% of the
principal amount of the Notes. The Notes will mature on January 30,
2032. Interest on the Notes initially will accrue at a rate equal
to 3.50% per annum from and including January 19, 2022, to, but
excluding, January 30, 2027, payable semiannually in arrears. From
and including January 30, 2027, to, but excluding, January 30,
2032, or the earlier redemption date, interest will accrue at a
floating rate per annum equal to a benchmark rate, which is
expected to be Three-Month Term Secured Overnight Financing Rate,
or Term SOFR (as defined in the Notes), plus a spread of 215 basis
points, payable quarterly in arrears.
The Notes are intended to qualify as Tier 2 capital for
regulatory purposes. The Company intends to use a significant
portion of the net proceeds from the Notes offering to repurchase
shares of its common stock through open market purchases, with the
remainder of the net proceeds used for working capital and other
general corporate purposes, including support for growth of its
total assets. The offering is expected to close on January 19,
2022, subject to the satisfaction of customary closing
conditions.
On January 30, 2027, or on any interest payment date thereafter,
the Company may, at its option, redeem the Notes, in whole or in
part, at a redemption price equal to 100% of the principal amount
of the Notes being redeemed, plus accrued and unpaid interest to,
but excluding, the date of redemption. The Company may also redeem
the Notes at any time prior to their maturity, including prior to
January 30, 2027, in whole, but not in part, upon the occurrence of
certain specified events.
Keefe, Bruyette & Woods, A Stifel Company, is acting as lead
book-running manager for the Notes offering, and Piper Sandler is
acting as active book-running manager. B. Riley Securities and
Wedbush Securities are acting as co-managers.
The offering of the Notes is being made by means of a prospectus
supplement and an accompanying base prospectus. The Company has
filed with the U.S. Securities and Exchange Commission (the “SEC”)
a registration statement on Form S-3 (File No. 333-261666)
(including a base prospectus) and a related preliminary prospectus
supplement dated January 11, 2022, to the base prospectus contained
in the registration statement, and will file a final prospectus
supplement relating to the offering of the Notes with the SEC.
Copies of the preliminary prospectus supplement and accompanying
base prospectus relating to the offering of the Notes may be
obtained by visiting EDGAR on the SEC website at www.sec.gov.
Alternatively, the Company, the underwriters or any dealer
participating in the offering will arrange to send you the base
prospectus and the related prospectus supplement if you request it
by contacting Keefe, Bruyette & Woods, A Stifel Company, by
telephone at (800) 966-1559 or by email at
USCapitalMarkets@kbw.com.
No Offer or Sale
This press release shall not constitute an offer to sell or the
solicitation of an offer to buy the Notes, nor shall there be any
sale of the Notes in any state or jurisdiction in which such offer,
solicitation or sale would be unlawful prior to registration or
qualification under the securities laws of any such state or
jurisdiction. Any offering of the Notes is being made only by means
of a written prospectus meeting the requirements of Section 10 of
the Securities Act of 1933, as amended. The Notes being offered
have not been approved or disapproved by any regulatory authority,
nor has any such authority passed upon the accuracy or adequacy of
the registration statement, the base prospectus contained in the
registration statement, the preliminary prospectus supplement, any
free writing prospectus, or the final prospectus supplement
relating thereto.
About HomeStreet
HomeStreet, Inc. (Nasdaq: HMST) is a diversified financial
services company headquartered in Seattle, Washington, serving
consumers and businesses in the Western United States and Hawaii.
The Company is principally engaged in real estate lending,
including mortgage banking activities, and commercial and consumer
banking. Its principal subsidiaries are HomeStreet Bank and
HomeStreet Capital Corporation. HomeStreet Bank is a member of the
FDIC and an Equal Housing Lender.
Forward-Looking
Statements
This press release contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995, Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934, as amended.
Forward-looking statements are not statements of historical or
current fact nor are they assurances of future performance and
generally can be identified by the use of forward-looking
terminology, such as “may,” “will,” “anticipate,” “intend,”
“could,” “should,” “would,” “believe,” “project,” “plan,” “goal,”
“target,” “potential,” “pro-forma,” “seek,” “contemplate,”
“expect,” “estimate,” “continue,” “project,” “anticipated,”
“modeled” or “forecasted” or the negative thereof as well as other
similar words and expressions of the future. These forward-looking
statements include, without limitation, those relating to the
anticipated closing date of the offering and the Company’s intended
use of the net proceeds from the offering. Forward-looking
statements are subject to risks, uncertainties and assumptions that
are difficult to predict as to timing, extent, likelihood and
degree of occurrence, which could cause the Company’s actual
results to differ materially from those anticipated in or by such
statements. Potential risks and uncertainties include, but are not
limited to, the Company’s ability to complete the offering and to
deploy the net proceeds of the offering as the Company currently
expects. The Company cautions readers that the foregoing list of
factors is not exclusive, is not necessarily in order of importance
and readers should not place undue reliance on any forward-looking
statements. Further, any forward-looking statement speaks only as
of the date on which it is made, and the Company does not intend to
and, except as required by applicable law, disclaims any obligation
to update or revise any forward-looking statement to reflect events
or circumstances after the date on which the statement is made or
to reflect the occurrence of unanticipated events, unless required
to do so under applicable securities laws.
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version on businesswire.com: https://www.businesswire.com/news/home/20220111006036/en/
Executive Vice President and Chief Financial Officer:
HomeStreet, Inc. John Michel (206) 515-2291
john.michel@homestreet.com or Media Relations: Misty Ford,
206-876-5506 misty.ford@homestreet.com
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