Sunday, May 3, 2020

New Buffalo Savings Bank and Teachers CU Adjust Price of the Transaction

New Buffalo Savings Bank (New Buffalo, MI) and Teachers Credit Union (South Bend, IN) announced on May 1 an update on the previously-announced purchase and assumption transaction.

The original terms of the transaction had shareholders receiving $28.42 per share in cash for each share of outstanding New Bancorp common stock. Under the revised terms, New Bancorp shareholders will receive $26.00 per share in cash for each share of outstanding New Bancorp common stock.

The adjustment in the per share price was based primarily on a significant increase in the termination cost of New Buffalo’s defined pension plan due to the unprecedented decline in long-term interest rates, as well as significant economic and market uncertainties related to the COVID-19 pandemic.

The transaction has received all regulatory approvals required to complete the transaction and expects to close the transaction on June 5, 2020, subject to obtaining the approval of the New Bancorp stockholders at a special meeting to be held on June 4, 2020 and the satisfaction of customary closing conditions.

Read the press release.

No comments:

Post a Comment


The content is provided for educational purposes only, with the understanding that neither the authors, contributors, nor the publishers of this site are engaged in rendering legal, accounting or other expert or professional services. If legal or other expert assistance is required, the services of a competent professional should be sought.

Comments appearing in response to articles appearing on this site do not necessarily reflect the views of the ABA. ABA makes no representations regarding the truth or accuracy of commentary or opinions that may be posted in response to the articles that appear on this website.

The inclusion herein of any link to a website, either in the text of an article or in a comment, does not denote any approval, sponsorship, or endorsement by the ABA, and ABA is not responsible for the content or opinions expressed on those linked websites or related commentary. This content is not licensed to third parties sites and is not affiliated with any third party site. Any reference to the author or this content on any third party site on the Internet is not authorized by the ABA.

It is the policy of the American Bankers Association to comply fully with all antitrust laws. Certain discussions should be considered off-limits, including those that contain competitively sensitive data such as price and cost information, or statements that could be construed as reflecting an attempt or desire to control or influence a particular market or markets. Future pricing or other prospective competitive information should never be shared.