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Hudson City Bancorp Raises 3.9 Billion in Public Offering

Mid-tier holding company that owns Hudson City Savings Bank announces the completion of its second-step conversion from a mutual holding company structure to a fully publicly owned company.Paramus-based Hudson City Bancorp (Nasdaq: HCBK), the mid-tier holding company that owns Hudson City Savings Bank, Tuesday announced the completion of its second-step conversion from a mutual holding company structure to a fully public company. As part of the conversion, the company also announced the sale of shares worth $3.93 billion in a public offering.

Hudson City announced the stock offering, the largest by a U.S. bank and seventh-largest by any U.S. company, last week.

The company sold a total of 392.98 million shares of common stock at a purchase price of $10.00 per share. Of the total offering, about 257.4 million shares were sold in a syndicated offering, while depositors bought about 135.6 million shares in a subscription offering.

Ryan Beck & Co. managed the subscription offering. Lehman Brothers acted as global coordinator and sole book-running manager and Ryan Beck acted as joint lead manager for the syndicated offering.

In connection with the completion of the second-step conversion, Hudson City announced a 3.206-for-1 stock split for existing shareholders. The company, which is retaining its “HCBK” ticker symbol, said it now has about 597.5 million common shares outstanding.

Hudson City had been structured as a mutual holding company. According to the Office of Thrift Supervision, such a structure combines elements of a mutual thrift, which is owned and controlled by depositors and sometimes by borrowers, with elements of a stock thrift and holding company.

The company operates 86 banking offices in New Jersey and Suffolk County, New York. It ended March with $21.1 billion in assets.

At the close of trading, shares of Hudson City Bancorp were up $0.11 to $10.95.