Largest Domestic Common Share Issue in BDA
The Bank of N.T. Butterfield & Son Limited today announced that all Rights Shares available under its $130 million Rights Offering have been subscribed, making it the largest domestic common share issue in Bermuda history. Demand among holders of ordinary shares and other investors exceeded the available supply.
Bradford Kopp, Butterfield’s president and CEO said:
We are very pleased with the results of the Rights Offering. Butterfield’s legacy shareholders and other investors have expressed confidence in the Bank and its future by taking up all of the available Rights Shares.
This is particularly encouraging following a difficult two-year period during which shareholders have seen the value of their investments in the Bank decline significantly.
On behalf of the Board and all of us at Butterfield, we would like to thank our shareholders for their ongoing loyalty. Our task is to reward that loyalty by returning the Bank to profitability and rebuilding sustainable value in the Butterfield franchise. With a de-risked balance sheet, strong capital position, sound operating structure and a great team of dedicated employees, we are very confident in our ability to achieve that goal.
Butterfield announced the Rights Offering on March 2nd, 2010 as part of a comprehensive recapitalisation and de-risking strategy. The recapitalisation involved the issuance of $550 million of new Common Shares to a number of institutional investors led by the Carlyle Group and Canadian Imperial Bank of Commerce, temporarily reducing the ownership position of Butterfield’s legacy shareholders to 17.5%.
Through the Rights Offering, legacy shareholders had the opportunity to purchase up to $130 million of Rights Shares to increase proportionately their ownership interest in the Bank. The Rights Shares will be converted into 99.3 million Common Shares and 8.3 million Contingent Value Convertible Preference Shares. The proceeds from the Rights Offering will be used to purchase Common Shares for cancellation from the New Investors.
With the Rights Shares oversubscribed, legacy shareholders and investors who purchased Rights on the BSX will own a collective 37.0% of Butterfield Common Shares, which effectively means a greater percentage of the Bank is locally owned.
