Central Pacific Financial Corp. (NYSE:CPF) Files An 8-K Other EventsITEM 8.01. OTHER EVENTS
On October 24, 2018, Central Pacific Financial Corp. (the "Company"), submitted a notice to the trustee and security holder to redeem, in whole and at par, $20 million of floating rate trust preferred securities issued by CPB Statutory Trust III, a Delaware statutory trust ("Trust III"). The trust preferred securities are being redeemed, along with $0.6 million in common securities issued by Trust III and held by the Company, as a result of the concurrent redemption of 50% of the Company's outstanding floating rate junior subordinated debentures due in December 2033 and held by Trust III, which underlie the trust preferred securities. The redemption is to the optional prepayment provisions of the indenture and is scheduled to occur on December 17, 2018.
The redemption price for the floating rate junior subordinated debentures will be equal to 50% of the principal amount plus accrued interest, if any, up to, but not including, the redemption date. The proceeds from the redemption of the floating rate junior subordinated debentures will be simultaneously applied to redeem all of the outstanding floating rate trust preferred securities at a price of 50% of the aggregate liquidation amount of the securities plus accumulated but unpaid distributions up to but not including the redemption date.
The Company has received all necessary regulatory approvals for the redemption.The redemption will be funded with excess cash currently available to the Company.
About Central Pacific Financial Corp. (NYSE:CPF)
Central Pacific Financial Corp. serves as the bank holding company for its bank subsidiary, Central Pacific Bank (the bank). The Company’s segments include Banking Operations, Treasury and All Others. The Banking Operations segment includes construction and commercial real estate lending, commercial lending, residential mortgage lending, consumer lending, trust services, retail brokerage services, and the Company’s retail branch offices, which provide a range of deposit and loan products, as well as various other banking services. The Treasury segment is responsible for managing the Company’s investment securities portfolio and wholesale funding activities. The All Others segment includes activities, such as electronic banking, data processing and management of bank owned properties. The Company provides an array of loan products, including residential mortgage loans commercial and consumer loans and lines of credit commercial real estate loans and construction loans.
