Hampton Roads Bankshares in Norfolk, Va., has completed its $45 million rights offering, though its private-equity partners were the largest contributors.
The $2 billion-asset company sold 64.3 million shares of common stock at 70 cents a share. The stock was sold at roughly half of the company's tangible book value per share at June 30.
The rights offering followed a $50 million infusion of capital from Carlyle Group, Anchorage Capital Group and CapGen Capital Group. The company also priced that raise at 70 cents a share.
Private-equity recapitalizations often include a rights offering that allows existing shareholders to avoid some dilution.
The company had hoped to raise as much as $45 million from existing shareholders, but the private-equity partners had standby agreements to fill the gap between the shareholders' interest and the $45 million goal. Existing shareholders bought 21 million shares, while the private-equity partners bought the remaining 43.3 million.
In addition to the $95 million of fresh equity, Hampton Roads has been retooling its balance sheet by selling deposits and branches associated with its 2009 purchase of Gateway Bank.