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CEO Douglas Glenn has won the patient support of Carlyle Group and other private-equity investors in the Virginia bank, and cleared the path for an important stock offering.
February 22 -
The Carlyle Group, a powerhouse private-equity firm that has been aggressively acquiring stakes in ailing banks, is looking to raise additional funds to invest in troubled and capital-starved financial institutions.
December 28
Three prominent private-equity groups that already own significant stakes in Hampton Roads Bankshares (HMPR) have agreed to pump another $50 million into the Norfolk, Va., company.
The $2.1 billion-asset Hampton Roads announced late Monday that affiliates of the Carlyle Group, Anchorage Capital Group and CapGen Capital Group will purchase more than 71 million shares at 70 cents each — a 79% discount to its current trading price of $3.32. The transaction is expected to close next month, at which point Carlyle and Anchorage would each own stakes of no more than 24.9% in Hampton Roads and CapGen's stake would grow from roughly 17% to no more than 41.7%.
Once that deal is completed, Hampton Roads intends to offer another $45 million in a rights offering. Other investors will have first dibs on those shares, though CapGen, Carlyle and Anchorage have agreed to buy more shares if the offering is undersubscribed.
Hampton Roads first announced plans to raise additional capital in February.
Hampton Roads, which has suffered steep losses resulting from the real estate bust and its 2009 purchase of Gateway Bank in North Carolina, said it would use the proceeds to satisfy all regulatory requirements and to provide "significant" additional capital to the company and its two bank subsidiaries.
