HICKSVILLE, N.Y. - New York Community Bancorp , Inc. (NYSE: NYSE:NYCB) has announced a significant investment of over $1 billion from a group of investors, including Liberty Strategic Capital, Hudson (NYSE:HUD) Bay Capital, and Reverence Capital Partners. The investment is contingent on final agreements and regulatory approvals.
The capital influx is spearheaded by Liberty Strategic Capital, which will contribute $450 million. Hudson Bay and Reverence Capital will invest $250 million and $200 million, respectively. This substantial investment is seen as a strong endorsement of NYCB's new management team and is expected to create a robust balance sheet for the bank.
In conjunction with the investment, NYCB will welcome four new directors to its board: Steven Mnuchin, former U.S. Treasury Secretary; Joseph Otting, former Comptroller of the Currency; Allen Puwalski from Hudson Bay; and Milton Berlinski, Managing Partner of Reverence Capital. Joseph Otting is also set to take the helm as Chief Executive Officer, while Alessandro DiNello will assume the role of Non-Executive Chairman.
The reconstituted board and leadership aim to steer NYCB towards becoming a well-capitalized national bank exceeding $100 billion, with a diversified and de-risked business model. The investment and leadership changes are part of NYCB's strategy to enhance earnings, profitability, and shareholder value.
The transaction details include the sale of common stock to the investors at $2.00 per share, along with a series of convertible preferred stock with the same conversion price. Investors will also receive warrants to purchase additional shares at a premium.
The deal is anticipated to close around Monday, March 11, 2024, subject to meeting closing conditions, regulatory approvals for the new executive roles, and the authorization of the shares on the New York Stock Exchange.
Jefferies LLC is acting as NYCB's exclusive financial advisor and sole placement agent, with legal counsel provided by Skadden, Arps, Slate, Meagher & Flom LLP and Sullivan & Cromwell LLP advising Liberty Strategic Capital.
NYCB, parent company of Flagstar Bank, N.A., reported assets of $113.9 billion and deposits of $81.4 billion as of December 31, 2023. The investment and board restructuring are based on a press release statement and aim to position NYCB for future growth and profitability.
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