Maui Business

Central Pacific Financial 1-for-20 Stock Split Starts Trading Tomorrow

February 3, 2011, 8:51 AM HST
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By Sonia Isotov

Central Pacific Financial Corp. (CPF), parent company of Central Pacific Bank (CPB), today announced that the one-for-twenty reverse stock split of its outstanding common stock will begin trading tomorrow, February 3.

The split was effective as of approximately 4 p.m. Eastern time on February 2, 2011 upon the acceptance by the Department of Commerce and Consumer Affairs of the State of Hawaii of the Company’s filing of an amendment to its articles of incorporation.

The common shares will begin trading on a split-adjusted basis and under a new CUSIP number effective as of the opening of trading on the New York Stock Exchange on February 3, 2011.

The completion of the reverse stock split is a closing condition to the Company’s planned $325 million private placement and the proposed exchange of CPF preferred stock held by the United States Department of the Treasury and accrued dividends thereon into shares of CPF common stock.  

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The reverse stock split provides the Company with sufficient authorized and unissued shares to complete the planned recapitalization.  

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The closings of the private placement and the exchange are conditioned upon one another, the receipt of requisite regulatory approvals and other customary closing conditions.  

The reverse stock split was previously approved by CPF’s shareholders at the shareholder meeting on May 24, 2010.  No fractional shares of common stock are to be issued as a result of the reverse stock split. For each holder of common stock, the number of shares held upon the effectiveness of the reverse stock split will be divided by twenty and, if the resulting number is not a whole number, then such number will be rounded up to the next nearest whole number.

As a result of the reverse stock split and elimination of fractional shares, the number of outstanding common shares was approximately 1,529,000 as of the effective time.  The reverse stock split will affect all holders of CPF’s common shares uniformly and will not affect any shareholder’s percentage ownership interest in the Company, except that the rounding up of fractional shares will result in a small change in the relative percent ownership of the respective holders of CPF’s common shares. The reverse stock split will not affect any shareholder’s proportionate voting power (except to the extent of fractional shares rounding described above).

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Central Pacific Financial Corp. is a Hawaii-based bank holding company with $3.9 billion in assets. Central Pacific Bank, its primary subsidiary, operates 34 branches, 120 ATMs, and a residential mortgage subsidiary in the state of Hawaii.  For additional information, please visit the Company’s website at http://www.centralpacificbank.com.

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