Investors in N.J. Could Raise $2.6B from Mutual Conversion

Investors Bancorp (ISBC) in Short Hills, N.J., could raise more than $2.6 billion as part of a highly anticipated second-step conversion.

The $15.6 billion-asset company said in a press release late Friday that it plans to sell 170 million to 264.5 million shares of common stock at $10 each in an offering set to expire on April 11. The amount slightly exceeds prior expectations.

Once the shares are sold, they will be exchanged for roughly two to three shares of stock in a new holding company. At that point, the new company will be completely owned by public shareholders. Investor Bancorp MHC will cease to exist.

Keefe, Bruyette & Woods will act as the offering's selling agent. RBC Capital Markets, KBW and Sandler O'Neill will serve as joint book-running managers. Luse Gorman Pomerenk & Schick is serving as legal counsel, while Silver, Freedman, Taff & Tiernan is serving as legal counsel to the underwriters.

Investors had been expected to convert last year, though it had to wait until it closed a pair of acquisitions to pursue the conversion. The company closed its purchase of Gateway Community Financial earlier this year.