POSTED: 1:31 p.m. HST, Mar 24, 2014
LAST UPDATED: 1:33 p.m. HST, Mar 24, 2014
The parent of Central Pacific Bank will repurchase more than 6.1 million shares worth $125 million through an auction tender offer that concluded Friday, as well as through separate purchase agreements.
The state's fourth-largest bank said Monday it expects to buy back $68.8 million worth of its Central Pacific Financial Corp. common stock at the price of $20.20 from shareholders who tendered shares. The tender offer allowed shareholders to indicate how many shares and at what price they wish to tender their shares within a price range that was not greater than $21 nor less than $18.50 per share.
Due to the oversubscription of the tender offer, the bank said it also will purchase on a pro rata basis 96.3 percent of the shares tendered at the price of $20.20 a share or lower.
Central Pacific also will repurchase $28.1 million worth of shares through repurchase agreements with each of its two largest shareholders, Carlyle Financial Services Harbor LP and ACMO-CPF LLC ("Anchorage"), at $20.20 per share.
Carlyle and Anchorage were the lead investors who each purchased $98.6 million worth of Central Pacific Financial Corp. stock in February 2011 at the price of $10 a share as part of the bank's $325 million recapitalization. Carlyle and Anchorage each currently own 22.5 percent of the company's 42,108,496 outstanding shares.
Central Pacific said the final purchase price from its auction tender offer will be announced following the completion of the confirmation process. The private repurchases are expected to occur on April 7
The company's stock closed up 17 cents Monday at $20.15 on the New York Stock Exchange.