New York Community Bancorp’s Acquisition of Flagstar Bancorp

Skadden, Arps, Slate, Meagher & Flom LLP advised Flagstar Bancorp, while Sullivan & Cromwell LLP advised New York Community on the deal. Fried Frank acted as counsel to Goldman Sachs as financial advisor to New York Community Bancorp.

Flagstar Bancorp, Inc. (“Flagstar”) and New York Community Bancorp, Inc. (“New York Community”) have entered into a definitive merger agreement under which the two companies will combine in an all stock merger. Under terms of the agreement, which was unanimously approved by the Boards of Directors of both companies, Flagstar shareholders will receive 4.0151 shares of New York Community common stock for each Flagstar share they own. The implied total transaction value based on closing prices as of April 23, 2021 is approximately $2.6 billion.

Based in Westbury, NY, New York Community Bancorp, Inc. is a leading producer of multi-family loans on non-luxury, rent-regulated apartment buildings in New York City, and the parent of New York Community Bank. At March 31, 2021, New York Community reported assets of $57.7 billion, loans of $43.1 billion, deposits of $34.2 billion, and stockholders’ equity of $6.8 billion.

Flagstar Bancorp, Inc. is a $29.4 billion savings and loan holding company headquartered in Troy, MI. Flagstar Bank, FSB, provides commercial, small business, and consumer banking services through 158 branches in Michigan, Indiana, California, Wisconsin, and Ohio.

Piper Sandler & Co. and Goldman Sachs & Co. LLC served as financial advisors to New York Community in connection with the transaction. Morgan Stanley & Co. LLC and Jefferies LLC acted as financial advisors to Flagstar.

The Skadden team advising Flagstar included Financial Institutions/M&A partners Sven Mickisch (New York; Picture) and David Clark(Chicago), and associates Matthew Nemeroff (New York) and Makala Kaupalolo (New York); Financial Institutions Regulation and Enforcement partner Brian Christiansen (Washington, D.C.); Consumer Financial Services partnerAnand Raman (Washington, D.C.); Executive Compensation and Benefits partner Joseph Penko (New York); Tax partner Steven Matays (New York); and Capital Markets partner Michael Zeidel (New York).

Fried Frank acted as counsel to Goldman Sachs with a team led by corporate partner Philip Richter and included corporate partner Roy Tannenbaum and corporate associates Michael J. Borek and Carolyn A. McNamara.

Involved fees earner: Michael Borek – Fried Frank Harris Shriver & Jacobson; Carolyn McNamara – Fried Frank Harris Shriver & Jacobson; Philip Richter – Fried Frank Harris Shriver & Jacobson; Roy Tannenbaum – Fried Frank Harris Shriver & Jacobson; Brian Christiansen – Skadden Arps Slate Meager & Flom; David Clark – Skadden Arps Slate Meager & Flom; Makala Kaupalolo – Skadden Arps Slate Meager & Flom; Steven Matays – Skadden Arps Slate Meager & Flom; Sven Mickisch – Skadden Arps Slate Meager & Flom; Matthew Nemeroff – Skadden Arps Slate Meager & Flom; Joseph Penko – Skadden Arps Slate Meager & Flom; Anand Raman – Skadden Arps Slate Meager & Flom; Michael Zeidel – Skadden Arps Slate Meager & Flom;

Law Firms: Fried Frank Harris Shriver & Jacobson; Skadden Arps Slate Meager & Flom;

Clients: Flagstar Bank; Goldman Sachs;

Author: Martina Bellini