Meridian Interstate Bancorp, the mid-tier stock holding company for East Boston Savings Bank, has reported that the Massachusetts Commissioner of Banks and the Federal Reserve Board have approved the commencement of its stock offering and the US Securities and Exchange Commission has declared its corresponding registration statement effective.
Meridian Interstate Bancorp is offering for sale between 8.5 and 11.5 million shares of common stock (subject to a 15% increase up to 13.29 million shares) at a purchase price of $10 per share. The shares of common stock to be offered by Meridian Interstate Bancorp will represent 43.7% of Meridian Interstate Bancorp’s outstanding common stock.
In connection with the offering, Meridian Interstate Bancorp will also contribute 300,000 shares of its common stock to Meridian Charitable Foundation. Meridian Financial Services, the mutual holding company parent of East Boston Savings Bank, will own the remainder of the outstanding common stock and will be the majority stockholder of Meridian Interstate Bancorp.
Meridian Interstate Bancorp will offer shares of its common stock in a subscription offering first to depositors of East Boston Savings Bank with a qualifying deposit as of June 30, 2006, second to depositors of East Boston Savings Bank with a qualifying deposit as of June 30, 2007, third to the Bank’s tax-qualified employee benefit plans, and finally to officers, directors, trustees, corporators and employees of Meridian Financial Services, Meridian Interstate Bancorp and East Boston Savings Bank who do not have a higher priority right.
Keefe, Bruyette & Woods is assisting Meridian Interstate Bancorp in selling its common stock in the offering on a best efforts basis. Muldoon Murphy & Aguggia is acting as legal counsel to Meridian Interstate Bancorp. Silver Freedman & Taff, is acting as legal counsel to Keefe, Bruyette & Woods.