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According to Securities and Exchange Commission documents on March 20, Winchester Savings Bank will be converting to a mutual holding company structure and has begun a community offering.
“After the reorganization, our corporators will continue to have the same voting rights in Winchester Bancorp, MHC as they had in Winchester Savings Bank before the reorganization,” the prospectus states.
According to a prospectus, completion of the reorganization and offering remains subject to the receipt of all final regulatory approvals along with the sale of at least 2,610,715 shares of common stock, which is the minimum of Winchester’s offering range. Its common stock will sell at $10 per share on a best efforts basis.
The Boston Business Journal first reported the offering.
The shares being offered represent 43 percent of the shares of common stock of Winchester Bancorp Inc. which will be outstanding following the offering. Winchester will also contribute 2 percent of its outstanding shares of common stock and $400,000 in cash to a charitable foundation that the bank is forming in connection with the reorganization and holding company conversion.
The capital raised in the offering will provide the bank with additional capital to support the origination of new loans and higher lending limits, support the growth of our banking franchise, provide an additional cushion against unforeseen risks, and expand Winchester’s asset and deposit base according to the prospectus. Additionally, the bank notes that the mutual holding company structure will give Winchester the ability to borrow funds, on a secured and unsecured basis as well as the potential to issue debt or capital stock to the public or in a private placement.
After the offering, 55 percent of the outstanding common stock will be owned by the new mutual holding company according to the prospectus. The bank may sell up to 4,061,964 shares to reflect demand for the shares or changes in market conditions following the commencement of the offering, without resoliciting subscribers.
The bank was originally chartered in 1871 and operates from its main office and four full-service branch offices in eastern Massachusetts, located in Arlington, Danvers and Woburn.
