Cases & Deals

CapGen Financial invests in and backstays rights offering in connection with Hampton Roads Bank-shares recapitalization

Clients CapGen Financial Group

Jones Day advised CapGen Financial Group, a private equity firm that invests in financial services businesses with a particular focus on community and regional financial institutions, in connection with the $235 million recapitalization of Hampton Roads Bankshares, Inc., the holding company for Bank of Hampton Roads and Shore Bank. Hampton Roads Bankshares issued Common Shares in a private placement to a group of investors led by CapGen Financial Group, Anchorage Advisors, L.L.C., and The Carlyle Group.

In connection with the recapitalization, CapGen back-stopped a successful $40 million rights offering for 100 million Shares of Hampton Roads Bankshares Common Stock.

Additionally, Hampton Roads Bankshares completed a tender offer for all of its outstanding Series A and Series B Preferred Stock; negotiated a 75% reduction in its outstanding TARP Preferred Stock; and repriced TARP warrants held by the U.S. Treasury.

In addition to private equity representation, Jones Day provided capital markets, tax, and regulatory advice regarding this recapitalization and the related transactions.