MountainSeed Advisors (NYSE:CPF)
MountainSeed Advisors Instrumental in Central Pacific Financial (NYSE:CPF) Deal
Nov. 4th 2010
HONOLULU—Central Pacific Financial announced today that it would raise $325 million in capital which would include large contributions from Carlyle Group, and Anchorage Capital Group.
MountainSeed Advisors was engaged by the company to provide loan level review and due diligence that proved integral to the transaction. They reviewed Commercial and Residential real estate loans held by CPF which was an integral part of understanding the basis for the investment.
Each private equity firm agreed to invest $98 million, contingent upon regulatory approvals and Central Pacific raising another $130 million from other sources, including a rights offering to current shareholders. The announcement was made on Thursday after the market close.
Central Pacific Financial owes the U.S. Treasury $135 million in bailout funds received through the Troubled Assets Relief Program, or TARP.
Assuming that the announced capital raise is completed, Central Pacific Financial and the bank subsidiary will have the capital needed to achieve a Tier 1 leverage ratio of 10% and a total risk-based capital ratio of 12% required by a December 2009 consent order from state regulators and the Federal Deposit Insurance Corporation. The bank missed a March 31 deadline to achieve the required capital ratios.
About MountainSeed Advisors:
MountainSeed Advisors is a real estate research and advisory firm that has performed analysis on close to $100 Billion in commercial real estate loans. MountainSeed has grown solely from the stellar reputation in the market, and has worked for many of the world’s leading money management firms and regional banks by performing, among other services, in depth loan reviews, analysis and underwriting on FDIC structured sales, reporting on the real estate collateralized municipal bond market, and gathering due diligence for a host of asset classes across a broad geographic region.
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MountainSeed Advisors (NYSE:CPF)
MountainSeed Advisors Instrumental in Central Pacific Financial (NYSE:CPF) Deal Nov. 4th 2010 HONOLULU—Central Pacific ...more >
