HomeStreet extends tender offers for four series of trust preferreds

By Susanna Moon

Chicago, Jan. 21 - HomeStreet, Inc. said it extended the expiration date of the tender offers for HomeStreet Statutory Trust I's fixed/floating-rate securities, HomeStreet Statutory Trust II's fixed/floating-rate securities, HomeStreet Statutory Trust III's fixed/floating-rate securities and HomeStreet Statutory Trust IV's fixed/floating-rate securities.

The tender offers will now expire at 5 p.m. ET on Feb. 22, extended from 5 p.m. ET on Jan. 20.

As of Jan. 20, none of the trust preferreds had been tendered. The securities may not be withdrawn once they have been tendered.

HomeStreet began the tender offers on Dec. 18 to purchase all of the outstanding trust preferreds for a cash amount equal to $200 per $1,000 liquidation amount.

At the time the tender offers began, there was about $60 million liquidation amount of trust preferreds outstanding.

No accrued distributions on the trust preferreds will be paid.

HomeStreet said it also is soliciting consents from holders to amend or remove some provisions to the declarations of trust.

Bank of New York Mellon is the trustee under which some collateralized debt obligations were issued.

HomeStreet said that Bank of New York Mellon failed to deliver the tender offer documents to the CDO beneficial holders, whose votes determine whether the bank will tender the trust preferreds in the tender offers.

As a result, HomeStreet said it designated Hexagon Securities, the dealer manager in the tender offers, as the recipient of the voting instructions from the CDO beneficial holders. If Hexagon Securities receives the required number of voting instructions from the CDO beneficial holders, it will deliver those voting instructions to Bank of New York Mellon, which should implement those instructions in accordance with its governing indentures.

The tender offers are conditioned on tenders of 100% of the liquidation amount outstanding of each series of trust preferreds and the completion of financing sufficient to purchase the trust preferreds and to satisfy the company's other regulatory capital requirements.

HomeStreet said it is tendering for the securities in order to reduce its debt.

The issuer said it believes that the tender offers also provide an opportunity to holders to gain liquidity that they may not otherwise have.

Hexagon Securities (212 572-9072) also is information agent and solicitation agent.

HomeStreet is a Seattle bank holding company for HomeStreet Bank, a state-chartered, federally insured savings bank with a strong focus on single-family mortgage originations.

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