NEW YORK--(BUSINESS WIRE)--Kroll Bond Rating Agency (KBRA) releases comment about New York Community Bancorp, Inc.’s Merger with Astoria Financial Corporation. New York Community Bancorp, Inc. (NYSE: NYCB, “New York Community”, or “the Company”) and Astoria Financial Corporation (NYSE: AF, “Astoria”) announced a strategic merger agreement under which Astoria will merge into New York Community. The transaction is valued at $2.0 billion and expected to be immediately accretive to pro forma diluted earnings per share and pro forma tangible book value per share. The completion of the merger is anticipated to occur during the fourth quarter of 2016. The combined entity is projected to have pro forma assets of approximately $64.1 billion, based on the September 30, 2015 balance sheets of the respective companies. Once NYCB eclipses $50 billion in assets, the Company will be subject to more regulatory burden. New York Community plans to reposition its balance sheet during the fourth quarter of 2015 by prepaying approximately $10 billion of the Company’s wholesale borrowings which is expected to result in a non-recurring after-tax prepayment charge in the amount of $614 million. New York Community has also commenced a follow-on offering of its common stock in order to reduce the impact of the aforementioned charge to its capital. NYCB priced 40,625,000 shares of its common stock at $16.00 per share, generating net proceeds of $630.5 million—approximately equivalent to the aforementioned charge. The remainder will be used for general corporate purposes, including the payment of dividends. The offering is expected to close on November 4, 2015. In November of 2014, KBRA affirmed the senior unsecured debt rating of BBB+ and short-term debt rating of K2 for New York Community Bancorp, Inc., with a stable outlook.
The ratings are based on KBRA’s Global Bank and Bank Holding Company Rating Methodology, published on January 28, 2015. The ratings and supporting rationale are available at www.kbra.com.
The full comment can be viewed at: www.krollbondratings.com/show_report/3201
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