People's United Financial, Inc. Announces Preliminary Results of the
Subscription Offering Portion of the Second Step Conversion and Increases
Purchase Limitations
BRIDGEPORT, Conn., April 5 /PRNewswire-FirstCall/ -- People's Bank (the
"Bank") (Nasdaq: PBCT) announced today that its stockholders and depositors
have each approved the plan of conversion pursuant to which People's Bank
and People's Mutual Holdings will convert to a stock holding company form
of organization and People's United Financial, Inc. (the "Company"), the
proposed holding company for People's Bank, is offering for sale up to
185,437,500 shares of its common stock. The Bank also announced that its
stockholders and depositors have each approved the establishment of The
People's Community Foundation and its funding with 2,000,000 shares of
Company common stock and $20.0 million in cash from the offering proceeds.
The Company also announced today it had received more than 20,800
orders for a total of approximately 64,000,000 shares of common stock at a
purchase price of $20.00 per share, or approximately $1.28 billion, in the
subscription offering, for which Ryan Beck & Co., Inc. acted as selling
agent. These orders will be maintained by the Company, with interest on
subscribers' funds continuing to accrue until completion of the offering.
As previously announced, the Company has commenced a syndicated
offering to the general public to sell shares of common stock not
subscribed for in the subscription offering. The syndicated offering is
expected to conclude during the week of April 9, 2007. Morgan Stanley & Co.
Incorporated is acting as sole book-running manager for the syndicated
offering. Keefe, Bruyette & Woods, Inc., Lehman Brothers Inc. and Ryan Beck
& Co., Inc. are acting as joint lead managers and Sandler O'Neill &
Partners, L.P. is acting as co- manager for the syndicated offering. The
syndicated offering is being conducted on a best efforts basis and none of
the members of the syndicate group is required to purchase any shares of
common stock in the offering.
Subject to market conditions, independent appraiser review and
regulatory approval, the Company expects to sell in the aggregate between
161,250,000 shares, which is the midpoint of the offering range set forth
in the prospectus dated February 14, 2007, and 185,437,500 shares, which is
the maximum of the offering range, in both the subscription offering and
the syndicated offering.
In addition, the Company announced that it has increased the aggregate
maximum purchase limitation applicable to purchasers acting together with
others from 2,000,000 shares ($40.0 million) to 5,000,000 shares ($100.0
million), in all categories of the offering combined. The individual
maximum purchase limitation of 625,000 shares ($12.5 million) previously
announced remains unchanged.
The completion of the conversion and offering remains subject to (1)
final approval from the Office of Thrift Supervision, including approval of
an updated appraisal, and (2) the sale of at least 137,062,500 shares of
common stock.
This release may contain certain "forward looking statements" within
the meaning of the Private Securities Litigation Reform Act of 1995, and
may be identified by the use of such words as "believe," "expect,"
"anticipate," "should," "planned," "estimated," and "potential." Examples
of forward looking statements include, but are not limited to, estimates
with respect to the financial condition, results of operations and business
of People's United Financial and People's Bank that are subject to various
factors which could cause actual results to differ materially from these
estimates. These factors include, but are not limited to, general economic
and market conditions, legislative and regulatory conditions, changes in
interest rates that affect People's Bank's interest rate spread, changes in
deposit flows, loan demand or real estate values and other economic,
governmental, competitive, regulatory and technological factors that may
affect People's United Financial's and People's Bank's operations.
A registration statement relating to these securities has been filed
with the United States Securities and Exchange Commission. This press
release is neither an offer to sell nor a solicitation of an offer to buy
common stock. The offer will be made only by means of the written
prospectus forming part of the registration statement.
A copy of the prospectus relating to the syndicated offering may be
obtained from:
Morgan Stanley & Co. Incorporated
180 Varick Street
New York, New York 10014
Attention: Prospectus Department
or via e-mail to prospectus@morganstanley.com
The shares of common stock are not savings accounts or savings
deposits, may lose value and are not insured by the Federal Deposit
Insurance Corporation or any other government agency.
People's Bank. It's Possible @ People's.
SOURCE People's Bank
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Related links:
http://www.peoples.com
http://www.prnewswire.com/comp/113252.html/
CONTACT:
Valerie C. Carlson of People's Bank,
Corporate Communications, +1-203-338-2351, or fax,
+1-203-338-3461, or vccarls@peoples.com
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