HONOLULU, April 11, 2011 /PRNewswire/ -- Central Pacific Financial Corp. (NYSE:CPF - News), parent company of Central Pacific Bank (CPB), today announced that it will commence on April 11, 2011, a $20 million common stock rights offering (the "Rights Offering"). Shareholders who owned common shares of the Company at the close of business on February 17, 2011 (the "Record Date") will receive at no charge a transferable right to purchase newly-issued common shares in the Rights Offering. Pursuant to normal practices of the New York Stock Exchange, shares of common stock traded during the period from February 15, 2011 through February 25, 2011 were traded with the rights (i.e. with "due bills" attached). Starting with the open of market on February 28, 2011, CPF common stock was traded without the rights (i.e. without "due bills attached").
The Company will issue up to 2,000,000 common shares in the Rights Offering at a price of $10 per share, the same price paid by the private investors in the Company's $325 million private placement (the "Private Placement"). Each right will entitle eligible shareholders to purchase 1.3081 newly-issued shares for each common share owned on the Record Date. To the extent that some eligible shareholders do not participate in the Rights Offering, or choose to purchase less than their full allocation of shares, the remaining shares will be available for purchase by other eligible shareholders pursuant to an over-subscription privilege.
The rights will become tradable on the New York Stock Exchange under the symbol “CPF-RT” on April 12, 2011, until 4:00 p.m., Eastern time, on May 5, 2011. The Rights Offering will expire at 5:00 p.m., Eastern time on May 6, 2011.
The Rights Offering will be made only by means of the final prospectus related to the Rights Offering, which will be filed with the Securities and Exchange Commission ("SEC").
