Use multiple layers with different text styling/ layer styles/ masks.
Quick and dirty.
Lay down the first text layer using a Regular font (not Bold) and add a white stroke. Set its Fill to zero
Copy that layer, set its Fill back to 100%. Turn off the Stroke. Set the blend mode to Dissolve, and reduce Opactiy to about 80%
Slightly more work, but a much better result.
Lay down the first text layer, but use the full bodied font (if that's what you want)
Set blend mode to Dissolve, and Opacity to 80% (ish)
Add another layer above the text layer. Ctrl click the text layer to load it as a selection, and Stroke 'Inside' with the same colour as the text.
To do the distortion
Free Transform, and about third from the right on the Options bar, click on Warp Mode (Sounds a bit Star Trek!)
Then way up the other end of the Options bar (goodness knows why they are spread out) you'll find the Warp Options. Use Shell upper for the 'We Grow' line.
Even better, selecting the font and using the refine edge tool to select only the center of each letter proved to be a great technique.