Central Pacific Parent Continues To Raise Capital

By Sonia Isotov

In the wake of a $325 million private placement, Pacific Financial Corp, (CPF), parent of Central Pacific Bank, will make a $20 million common stock rights offering beginning on April 11, 2011 by Pacific Financial Corp. (CPF), parent company of Central Pacific Bank.

Shareholders who owned common shares of the Company at the close of business on February 17, 2011 will receive at no charge a transferable right to purchase newly-issued common shares in the Rights Offering.  

The Company will issue up to 2,000,000 common shares in the Rights Offering at a price of $10 per share, the same price paid by the private investors in the Company’s previous $325 million private placement.

Each right will entitle eligible shareholders to purchase 1.3081 newly-issued shares for each common share owned on the Record Date. To the extent that some eligible shareholders do not participate in the Rights Offering, or choose to purchase less than their full allocation of shares, the remaining shares will be available for purchase by other eligible shareholders pursuant to an over-subscription privilege.

The rights will become tradable on the New York Stock Exchange under the symbol “CPF-RT” on April 12, 2011, until 4:00 p.m., Eastern time, on May 5, 2011. The Rights Offering will expire at 5:00 p.m., Eastern time on May 6, 2011.