Press Releases

Treasury Department Announces Pricing of Public Offering of Central Pacific Financial Common Stock

(Archived Content)
WASHINGTON -- The U.S. Department of the Treasury announced today that it priced a secondary public offering of the remaining 2,770,117 shares of common stock of Central Pacific Financial Corp. (the “Company”) it holds at $13.15 per share. The aggregate net proceeds to Treasury from the offering are expected to be $36.0 million.
 
After this offering, Treasury will no longer hold any shares of the Company’s common stock. In June 2011, Treasury sold 2,850,000 shares of the Company’s common stock at $12.75 per share for net proceeds of $35.9 million. Including today’s transaction, the expected total aggregate net proceeds from Treasury’s sale of its common stock position in the Company is $71.9 million.
 
Treasury will continue to hold warrants to purchase 79,288 shares of the Company’s common stock – the disposition of which will provide additional proceeds to taxpayers.  Treasury’s initial preferred stock investment in the Company, made as part of the Troubled Asset Relief Program’s (TARP) Capital Purchase Program (CPP), was exchanged for common stock on February 18, 2011 as part of a larger recapitalization of the Company.  Today’s sale is part of Treasury's ongoing efforts to exit its remaining TARP investments and recover taxpayer dollars.
 
TARP’s bank programs have already earned a significant profit for taxpayers. Including the expected proceeds from today’s transaction, Treasury has recovered $260 billion from TARP’s bank programs through repayments, dividends, interest, and other income – compared to the $245 billion initially invested.  Each additional dollar recovered from TARP’s bank programs is an additional dollar of profit for taxpayers.
 
The closing is expected to occur on or about April 4, 2012, subject to customary closing conditions.  Sandler O’Neill & Partners, L.P. was the sole underwriter for the offering. A registration statement relating to the shares in this offering and shares held by certain other selling shareholders was previously filed by the Company and declared effective by the Securities and Exchange Commission (“SEC”).  These filings are available on the SEC’s website at www.sec.gov.
 
Before you invest, you should read the prospectus in the registration statement and other documents the issuer has filed with the SEC for more complete information about the issuer and this offering. You may get these documents for free by visiting EDGAR on the SEC website at www.sec.gov. Alternatively, the underwriter of the offering will arrange to send you the prospectus if you request it. Copies of the prospectus may be obtained when available from Sandler O’Neill & Partners, L.P., 1251 Avenue of the Americas, 6th Floor, New York, NY 10020 ((866) 805-4128), attention James Furey (jfurey@sandleroneill.com)).
 
This news release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. ​
 
For more details on Treasury’s lifetime cost estimates for TARP programs, please visit Treasury’s Monthly 105(a) Report to Congress on TARP at this link.
 
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