Berkshire Hills Bancorp Completes $100 Million Common Stock Sale in Private Placement Deal

On December 19, 2024, Berkshire Hills Bancorp, Inc. (NYSE:BHLB), commonly referred to as Berkshire, successfully closed a previously announced transaction involving a $100 million common stock sale. The offering, which saw the issuance of 3,448,275 shares at a price of $29.00 per share, took place through subscription agreements with institutional accredited investors in a private placement on December 16, 2024.

This capital raise was executed at a discount of 3.97% to the market price of Berkshire’s common stock on December 13, 2024. Concurrently, on the same day, Berkshire finalized an agreement to merge with Brookline Bancorp, Inc. (“Brookline”) in an all-stock deal valued at approximately $1.1 billion. The merger agreement implies a per-share value of $12.68 based on Berkshire’s closing stock price of $30.20 on December 13, 2024.

The issuance and sale of these shares under the Securities Purchase Agreement were exempt from registration under the Securities Act of 1933. This exemption was granted under Section 4(2) and Rule 506 of Regulation D promulgated under the Securities Act, as well as applicable state securities or “blue sky” laws.

In a corresponding announcement, Berkshire disclosed the filing of Form 8-K with the Securities and Exchange Commission (“SEC”) on December 16, 2024, including the Securities Purchase Agreement and a Registration Rights Agreement. Both agreements were integrated by reference to the Registrant’s Current Report on Form 8-K.

As per the SEC filing, signed on December 23, 2024, by Wm. Gordon Prescott, Senior Executive Vice President, and General Counsel of Berkshire Hills Bancorp, the successful completion of this common stock sale highlights the company’s strategic moves in its financial operations.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Berkshire Hills Bancorp’s 8K filing here.

About Berkshire Hills Bancorp

Berkshire Hills Bancorp, Inc operates as the bank holding company for Berkshire Bank that provides various banking products and services in the United States. The company provides various deposit accounts, including demand deposit, interest-bearing checking, regular savings, money market savings, time certificates of deposit, and retirement deposit accounts.