Bank Of Hampton Roads Announces Closing Of Rights Offering

NORFOLK, Va., Sept. 27, 2012 (GLOBE NEWSWIRE) -- Hampton Roads Bankshares, Inc. (Nasdaq:HMPR) (the "Company"), the holding company for The Bank of Hampton Roads ("BHR") and Shore Bank, today announced the closing of a common stock rights offering (the "Rights Offering") and standby purchase of shares not sold in the Rights Offering, in which it issued 64,287,848 common shares and raised $45,001,494 in additional capital.

Douglas J. Glenn, President and Chief Executive Officer of the Company and Chief Executive Officer of BHR, said, "The successful completion of this rights offering and the associated private placement reinforces the capital foundation of the Company, builds on the positive trends in our operations and financial results and provides additional support to our experienced team of community bankers as they focus on meeting the banking needs of the families and businesses in our markets. We remain sharply focused on continuing our positive momentum."

The Company issued 21,000,687 shares of common stock, at a price of $0.70 per share, to holders of its common stock who elected to participate in the Rights Offering. 

In connection with the Rights Offering, the Company entered into a Standby Purchase Agreement with the following entities or their affiliates or managed funds: The Carlyle Group, L.P., Anchorage Capital Group, L.L.C. and CapGen Capital Group VI LP (together, the "Investors"). The Standby Purchase Agreement provided that the Investors would not exercise their basic subscription rights and instead would purchase from the Company, at the subscription price, a portion of the shares, if any, up to an aggregate of 53,518,176 shares, not subscribed for in the Rights Offering. Pursuant to the terms of the Standby Purchase Agreement, the Investors purchased 43,287,161 shares of common stock at $0.70 per share. 

The Company will use the proceeds of the Rights Offering for general corporate purposes.

If you liked this article you might like

Hampton Roads Bankshares (HMPR) Upgraded From Sell to Hold

Hampton Roads Bankshares Inc Stock Upgraded (HMPR)

Insiders Trading PROJ JAX HMPR GIII

5 Stocks With Big Insider Buying

Insiders Trading DNKN, GEVA, HMPR, PGCG