East Boston Savings Bank’s (EBSB) parent company Meridian Interstate Bancorp, Inc. has formed a new corporation and plans to go fully public by late June.
The newly formed corporation, Meridian Bank Corp, Inc. is offering between 23,375,000 and 31,625,000 shares of common stock for sale at $10.00 per share, subject to increase to up to 36,368,750 shares, which represents the majority ownership interest in EBSB currently owned by Meridian Financial Services, Incorporated.
At the conclusion of the conversion and offering each existing share of common stock held by the public stockholders of Meridian will be exchanged for between 1.7580 and 2.3785 shares, subject to adjustment to up to 2.7353 shares of the new corporation’s stock.
After the completion of the conversion and offering, EBSB will be 100 percent owned by public stockholders and Meridian and Meridian Financial Services will cease to exist.
Offering materials have already been mailed to East Boston Savings Bank depositors eligible to purchase shares in the subscription offering, and proxy solicitation materials will be mailed to stockholders.
Shares of common stock not sold in the subscription offering will be available in a community offering to the general public, including stockholders of the EBSB.
The subscription and community offerings are expected to expire at 5:00 p.m. on June 20, 2014. Any shares not sold in the subscription and community offerings are expected to be sold in a syndicated or firm commitment underwritten offering.
Meridian has established a Stock Information Center to handle inquiries of its depositors, stockholders and other prospective investors with respect to the subscription and community offerings.
Copies of the prospectus and order forms for ordering stock in the subscription and community offerings may only be obtained from the Stock Information Center. The Stock Information Center’s telephone number is (978) 977-7171. The Stock Information Center’s hours of operation will be from 10:00 a.m. to 4:00 p.m., Eastern Time, Monday through Friday, and from 10:00 a.m. to 4:00 p.m., Eastern Time, on Saturday, June 14.
Sterne, Agee & Leach, Inc. is assisting Meridian in selling its common stock in the subscription and community offerings on a best efforts basis. The completion of the conversion and offering is subject to selling a minimum of 23,375,000 shares in the offering, the receipt of all regulatory approvals and the approval of EBSB’s stockholders.
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