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Hampton Roads Bankshares's (HMPR) second-quarter loss narrowed from a year earlier as improveed credit quality aided the Norfolk, Va., company.
July 24 -
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
Hampton Roads Bankshares (HMPR) is on the verge of a $45 million rights offering, the second phase of the Norfolk, Va., company's $95 million capital-raising effort.
Hampton Roads will issue as many as 64.3 million shares of common stock in the rights offering at 70 cents per share, the $2.1 billion-asset company said. It will use the funds for general corporate purposes such as making capital contributions to its banks, the Bank of Hampton Roads and Shore Bank.
For each share owned at May 31, shareholders will receive a nontransferable right to purchase 1.86 shares of common stock at the subscription price. If all of a shareholder's subscription rights are exercised, the investor will be able to buy 2.0667 shares of common stock at the same price, Hampton Roads said in a release Monday.
Additionally, Hampton Roads entered into an agreement with Carlyle Group, Anchorage Capital Group and CapGen Capital Group VI, which each own large stakes in the company. Under the agreement, this group of investors will not exercise their subscription rights and instead will purchase shares that are not purchased during the rights offering — up to 53.5 million shares. The offering is expected to close on Sept. 5.
In June, the
Hampton Roads has suffered steep losses from the real estate bust and its 2009 purchase of Gateway Bank in North Carolina. It lost $13.6 million in the first half of this year, and it last turned a profit in the first quarter of 2009.