Butterfield mulls US stock listing
Butterfield Bank is looking into the possibility of listing its shares on a US stock index in order to increase its ability to raise capital and provide more liquidity for shareholders.
In addition, the bank is mulling the possibility of placing its equity securities and other capital instruments in the international markets.
Even if it does eventually opt for a secondary stock listing elsewhere, the bank stated that it intends to maintain its listing on the Bermuda Stock Exchange.
In a statement, Michael Collins, chief executive officer, said the bank is “considering the merits of alternative transactions in its equity securities. These initiatives may include an international listing of its common shares in the United States — in addition to its listing on the Bermuda Stock Exchange — as a way of enhancing the bank's access to capital, providing additional liquidity for its shareholders, and facilitating access to a wider pool of international investors.
“Additionally, the bank is considering the launch of a placement of its equity securities and other capital instruments in the international markets.”
Butterfield is working with an internationally recognised investment bank to lead the process.
Mr Collins also stated that the bank is considering the merits of a public offering of a new class of preference shares, in conjunction with a possible restructuring or redemption of its outstanding 8 per cent preference shares, including an exchange offer and other refinancing options.
The bank intends to work through these alternative transactions over the next six months.