Remaining $20 million to settle with rights offering in fourth quarter
By Devika Patel
Knoxville, Tenn., Sept. 30 - Hampton Roads Bankshares, Inc. said it sold 587.5 million common shares in a private placement. The placement was announced on May 24 and priced for $255 million June 30. The company amended the per-share price on Aug. 17.
The Carlyle Group is investing $72.98 million, Anchorage Advisors, LLC is investing $66.71 million and CapGen Capital Group VI, LP is investing $44.49 million by buying the 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 is a 52.94% discount.
The company expects to close on the remaining $20 million of the placement and issue an additional 50 million shares contemporaneously with the closing of a common stock rights offering in the fourth quarter.
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.
"This private placement obviously represents a significant milestone for the company," the company's president and chief executive officer John A. B. Davies, Jr. said in a press release Thursday.
"The additional capital will substantially strengthen our balance sheet, position us to implement the remaining steps in our recapitalization plan and provide a solid foundation for our future.
"We appreciate the loyalty and strong support of our customers, communities and employees throughout this recapitalization process," Davies added.
Hampton Roads, located in Norfolk, Va., is the financial holding company for Bank of Hampton Roads and Shore Bank.
| Issuer: | Hampton Roads Bankshares, Inc.
|
| Issue: | Common stock
|
| Amount: | $255 million
|
| Price: | $0.40
|
| Warrants: | No
|
| Investors: | Carlyle Group (for $72,982,786), Anchorage Advisors, LLC (for $66,708,076) and CapGen Capital Group VI, LP (for $44,489,507)
|
| Announcement date: | May 24
|
| Pricing date: | June 30
|
| Revised: | Aug. 11
|
| Settlement date: | Sept. 30 (for $235 million)
|
| Stock symbol: | Nasdaq: HMPR
|
| Stock price: | $0.75 at close June 30
|
| Market capitalization: | $20.16 million
|
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