CU Convert Community CU Files To GoPublic
PLANO, Texas - (04/19/06) ViewPoint Bank, known untilDecember as Community CU, said Tuesday it plan to raise up to $110million with an initial public offering of as many as 11 millionshares, the biggest IPO yet for a converted credit union. Planscall for the $1.4 billion ex-credit union to establish a mutualholding company which will continue to control 55% of the shares,leaving a minority interest in public hands, according to documentsfiled with the Securities and Exchange Commission. As many as onemillion shares, valued at $10 million, will be reserved for topmanagers and directors of the former credit union as eitherrestricted stock grants or awards under an employee stock ownershipplan; while another one million options will be reserved for thesame insiders. The eight directors, including CEO Gary Base, allplan to buy stock in the IPO. Base plans to buy 30,000 shares.Under the offering, Community CU members who had at least $50 ondeposit as of December 31, 2004 will have first priority to buyshares, as many as 40,000 each. Second priority will go to taxqualified employee plans. Third priority to depositors as of March31, 06. And remaining shares will be sold to the public. Shares areexpecetd to be offered for $10 each. Proceeds from the offeringwill be used to finance the ex-credit unions mortgageprogram, to buy investment securities, or finance acquisitions. Theoffering is being underwritten by Keefe, Bruyette & Woods,which has underwritten almost every other converted credit unionIPO.