West Hamilton Announces Rights Offering
West Hamilton Holdings Limited, the real estate development company, announced the upcoming launch of an underwritten one for one Rights Offering to raise approximately BD$9.3 million. The majority of the net proceeds will be used to repay bank debt.
The Company will issue to Eligible Shareholders as of July 4, 2011 one transferable right for every share of common stock held. Each right will entitle the holder to purchase one new share of common stock at the subscription price of BD$6.50 per share. This represents a discount of 15%, which is based on the weighted average price of BD$7.65 for the previous twelve months to date on a total volume traded of 72,370 shares.
“We felt that due to the current downturn in the economy it would be advantageous at this time to reduce debt and thereby reduce the consequent carrying costs” says Chief Financial Officer Harrichand Sukdeo.
“West Hamilton believes the benefit of the discount between the offer price and current market price should first be shared with the current shareholders. We are seeing increased expressions of interest from companies viewing the east side of our Pitts Bay Road site which, when fully developed, we hope will become a center of international commerce in Bermuda.”
“It is our view that the Company needs to position itself to take advantage of this potential growth, butin the interim manage its business through this difficult economic environment. Deleveraging will also reduce the demand on working capital and in turn reduce the level of business liquidity risk,” Mr. Sukdeo concluded.
The Offering is being underwritten by Bermuda Commercial Bank Limited. Horst Finkbeiner, COO of BCB commented that “We are very pleased to underwrite the West Hamilton rights issue, and with it, expand our portfolio of corporate finance services to include underwriting, as well as listing and international brokerage.”
