Maui Business

Central Pacific Completes $325 Million Capital Raise, TARP Stock Exchange

February 22, 2011, 7:37 AM HST
Listen to this Article
2 minutes
Loading Audio... Article will play after ad...
Playing in :00
A
A
A

By Sonia Isotov

Central Pacific Financial Corp. (CPF), parent company of Central Pacific Bank (CPB), last Friday announced the successful completion of its previously announced $325 million capital raise from accredited investors in a private placement.

Included in the announcement was the exchange of the preferred stock issued to the U.S. Department of the Treasury and accrued and unpaid dividends for common stock.

The Company issued 32,500,000 common shares at a price of $10 per share to a number of investors, including affiliates of each of The Carlyle Group and Anchorage Capital Group, L.L.C.  The Company also issued 5,620,117 common shares to the Treasury in the exchange.

With the completion of the Private Placement, the Company’s capital ratios now exceed the minimum levels required by its regulatory consent order and are at “well capitalized” levels under applicable guidelines.

ARTICLE CONTINUES BELOW AD

“We are pleased to have attained a critical milestone in our Company’s recovery plan and look forward to serving our customers and supporting our community with a solid capital foundation,” said John C. Dean, executive chairman of CPF and CPB.

ARTICLE CONTINUES BELOW AD

James F. Burr, a managing director for The Carlyle Group, said, “We are pleased to partner with the team at Central Pacific through the recapitalization of the institution. We are grateful to all of Central Pacific’s customers and employees who have remained with the bank and look forward to a long relationship as it fulfills its commitment to providing superior customer service in the Hawaii markets.”

Daniel Allen, Anchorage Capital Group, L.L.C. Partner said, “We are pleased with the outcome of CPF’s recapitalization. CPF’s management team continues to make significant progress in its recovery plan, and we believe the Company has a strong franchise and customer base from which it can grow.”

The Company’s financial advisor for its recapitalization and placement agent for the Private Placement is Sandler O’Neill + Partners. The Company’s legal advisor for its recapitalization is Sullivan & Cromwell LLP.

ARTICLE CONTINUES BELOW AD

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, over 120 ATMs, and a residential mortgage subsidiary in the state of Hawaii.

E-Mail Newsletters Receive daily or weekly updates via e-mail. Subscribe Now
News Alerts Breaking news alerts on your mobile device. Get the App

Comments

This comments section is a public community forum for the purpose of free expression. Although Maui Now encourages respectful communication only, some content may be considered offensive. Please view at your own discretion. View Comments