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West Hamilton Announces Rights Offering
Hamilton, Bermuda – 28 June, 2011 - West Hamilton Holdings Limited (the “Company” or “West Hamilton”; Ticker: WHHL.BH), the real estate development company, is pleased to announce the upcoming launch of an underwritten one for one Rights Offering to raise approximately BD$9.3 million. The majority of the net proceeds will be used to repay bank debt.
The Company will issue to Eligible Shareholders as of July 4, 2011 (the “Record Date”) one transferable right for every share of common stock held. Each right will entitle the holder to purchase one new share of common stock at the subscription price of BD$6.50 per share. This represents a discount of 15%, which is based on the weighted average price of BD$7.65 for the previous twelve months to date on a total volume traded of 72,370 shares.
“We felt that due to the current downturn in the economy it would be advantageous at this time to reduce debt and thereby reduce the consequent carrying costs” says Chief Financial Officer Harrichand Sukdeo. “West Hamilton believes the benefit of the discount between the offer price and current market price should first be shared with the current shareholders. We are seeing increased expressions of interest from companies viewing the east side of our Pitts Bay Road site which, when fully developed, we hope will become a center of international commerce in Bermuda. It is our view that the Company needs to position itself to take advantage of this potential growth, but in the interim manage its business through this difficult economic environment. Deleveraging will also reduce the demand on working capital and in turn reduce the level of business liquidity risk,” Mr. Sukdeo concluded.
The Offering is being underwritten by Bermuda Commercial Bank Limited. Horst Finkbeiner, COO of BCB commented that “We are very pleased to underwrite the West Hamilton rights issue, and with it, expand our portfolio of corporate finance services to include underwriting, as well as listing and international brokerage.”
Important Dates:
|
Prospectus and Letters of Allotment mailed to Eligible Shareholders |
July 4, 2011 |
|
Record Date for Rights Offering |
July 4, 2011 |
|
Trading of Rights commences |
July 5, 2011 |
|
Trading of Rights concludes |
July 19, 2011 |
|
Rights Offering Closing Date |
July 22, 2011 |
|
New Shares issued to Shareholders (on or about) |
August 1, 2011 |
|
New Shares commence trading on the BSX (on or about) |
August 1, 2011 |
All queries regarding the Rights Offering should be directed to the “West Hamilton Helpdesk Hotline” at (441) 295-5985 between the hours of 9:00am and 4:30pm, Monday to Friday. Alternatively, Eligible Shareholders and Rights Transferees may visit the “West Hamilton Helpdesk” on the ground floor of The Belvedere Building, 69 Pitts Bay Road, Pembroke HM 08 between the hours of 9:00 a.m. and 4:30 p.m., Monday to Friday.
Unless the context requires otherwise, capitalized terms used in this announcement have the same meanings as given to them in the Prospectus to be mailed to Eligible Shareholders on July 4, 2011.
Media Contacts:
Horst Finkbeiner, COO or Harrichand Sukdeo, CFO
Bermuda Commercial Bank West Hamilton Limited
Tel: 441-295-5678 Tel: 441-295-5985
Email: hfinkbeiner@bcb.bm Email: harrys@westhamilton.bm
Bermuda Commercial Bank Limited is one of Bermuda’s four licensed banks, established in 1969 and regulated by the Bermuda Monetary Authority. It is Bermuda’s only bank focused purely on corporate and private wealth clients, offering a range of bespoke financial solutions. BCB’s website is www.bcb.bm and its shares are publicly traded and listed on the Bermuda Stock Exchange www.bsx.com (Ticker: BCB.BH). BCB’s share price is available on the BSX and on Bloomberg and is published daily in the Royal Gazette.
West Hamilton Holdings Limited (the “Company”), was incorporated in Bermuda in 2007 at which time the directors of the Company approved a reorganization of the West Hamilton Group of Companies. The primary assets of the Company consist of real property at 69 and 71 Pitts Bay Road, Pembroke HM 08. It remains the Company’s intention to develop this site by constructing four new buildings yielding 105,000 square feet of office space, 40,000 square feet of residential space, 8,000 square feet of retail space and underground parking for approximately 181 cars.