Series A, B preferreds to be exchanged; $20 million to $40 million rights offering in the plans
By Jennifer Chiou
New York, Aug. 30 - Hampton Roads Bankshares, Inc. announced that it is on target to close the initial $235 million of its planned $255 million private placement of stock by the end of the third quarter and added that closing of the placement is contingent on the exchange of all of its series A and B preferred stock.
After the initial closing, the company said it intends to close the remaining $20 million of the placement and conduct a rights offering of $20 million to $40 million, allowing existing holders to purchase common stock at the same price as institutional investors participating in the private placement.
Any unsubscribed portion of the rights offering will be taken up by the participants of the private placement.
Earlier in the month, the company revised the per-share price of the private placement, which was announced on May 24 and priced on June 30.
As already reported, the Carlyle Group will invest $72.98 million, Anchorage Advisors, LLC will invest $66.71 million and CapGen Capital Group VI, LP will invest $44.49 million by buying common shares at $0.40 each. The per-share price originally was $0.43, a 49.41% discount to the June 29 closing share price of $0.85. The current price will be a 52.94% discount.
The company's annual meeting is set for Sept. 28.
The placement is also conditioned on the approval of an amendment to the designations of the series A and B preferred stock allowing the company to convert the securities into common stock at its option.
Proceeds will be used to make capital contributions to and strengthen the balance sheets of the company's subsidiary banks and for other general corporate purposes.
Hampton Roads, located in Norfolk, Va., is the financial holding company for Bank of Hampton Roads and Shore Bank.
| Issuer: | Hampton Roads Bankshares, Inc.
|
| Investors: | Carlyle Group (for $72,982,786), Anchorage Advisors, LLC (for $66,708,076) and CapGen Capital Group VI, LP (for $44,489,507)
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| Stock symbol: | Nasdaq: HMPR
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| Stock price: | $0.75 at close June 30
|
| Market capitalization: | $25.48 million
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|
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| Private placement
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| Issue: | Common stock
|
| Amount: | $255 million
|
| Price: | $0.43
|
| Warrants: | No
|
| Announcement date: | May 24
|
| Pricing date: | June 30
|
| Revised: | Aug. 11
|
|
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| Rights offering
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| Issue: | Common stock
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| Amount: | $20 million to $40 million
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| Price: | $0.43
|
| Warrants: | No
|
| Announcement date: | Aug. 30
|
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