Converted Plano Credit Union Plans Record $110M IPO

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ViewPoint Bank in Plano, Tex., a former credit union that convertedto a savings bank in December, said that it plans to raise upto $110 million in an initial public offering.

The IPO would be the largest ever for a converted credit union.

The $1.4 billion-asset bank plans to establish a mutual holdingcompany, which would control 55% of the shares, and sell about11 million shares to the public, according to documents filed withthe Securities and Exchange Commission.

As many as 1 million shares, valued at $10 million, would bereserved for top managers and directors as either restricted stockgrants or awards under an employee stock ownership plan. Another1 million options would be reserved for the same insiders.

The eight directors, including chief executive Gary Base, plan to buystock in the IPO, according to the SEC filing.ViewPoint customers whohad at least $50 of deposits as of Dec. 31, 2004, when it was still a creditunion, would have first priority to buy shares, as many as 40,000each. Second priority would go to tax-qualified employee plans; depositorsas of March 31, 2006, would have third priority.

The remaining shares, expected to be offered at $10 each, wouldbe sold to the public. ViewPoint said that proceeds from the offeringwould be used to expand its mortgage program, buy investmentsecurities, or finance acquisitions. Keefe, Bruyette & WoodsInc. is underwriting the offering.

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