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.
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