Property developer West Hamilton Holdings Ltd is seeking to raise $9.3 million in a rights issue.In an announcement through the Bermuda Stock Exchange yesterday, the company said most of the proceeds would be used to pay off bank debt.The company is developing the Belvedere Place office buildings project on Pitts Bay Road on the 2.1-acre site of the former Bermuda Bakery. It will comprise 50,000 sq ft of office space.Eligible shareholders of the company, as of July 4, will receive 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 $6.50 per share. This represents a discount of 15 percent, based on the weighted average price of $7.65 for the previous 12 months.“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,” said West Hamilton’s chief financial officer Harrichand Sukdeo in the statement. “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 centre 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 Ltd.BCB COO Horst Finkbeiner said: “We are very pleased to underwrite the West Hamilton rights issue, and with it, expand ourportfolio of corporate finance services to include underwriting, as well as listing and international brokerage.”Trading of rights is scheduled to start on July 5 and to finish on July 19. The rights offering closing date is July 22, while new shares will be issued to shareholders on or about August 1, 2011.All queries regarding the rights offering should be directed to the “West Hamilton Helpdesk Hotline” at 295-5985 between 9am and 4.30pm, Monday to Friday.