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23 June 2009
Butterfield Concludes Successful Preference Share Offering

The Bank of N.T. Butterfield & Son Limited (“Butterfield” or “the Bank”) announced the official closing of the Offering Period for an issue of USD 200 million of Government guaranteed, 8.00% Non-Cumulative Perpetual Limited Voting Preference Shares (the “Preference Shares”) on 22 June 2009. 

 

The Preference Share principal and dividend payments are guaranteed by the Government of Bermuda and carry a rating of Aa2 from Moody’s and AA+ from Fitch.  The Preference Shares will be listed on both the Bermuda Stock Exchange and the Luxembourg Stock Exchange, trading on the Euro MTF Market.

 

The initial Preference Share Offering was fully subscribed by private investors, with more than 95% of the value of subscriptions coming from Bermuda residents and institutions.  This means that the Government of Bermuda, which had pledged to purchase any portion of the Preference Share issue that was not privately subscribed, was not required to purchase any Preference Shares.

 

Butterfield received USD 200 million (less commissions and offering expenses) in proceeds from the Preference Share issue, which will be used by the Bank for general corporate purposes and working capital.  The net proceeds of the issue are accorded tier 1 capital treatment by the Bermuda Monetary Authority.

 

Alan Thompson, Butterfield’s President & Chief Executive Officer, commented on the conclusion of the Preference Share Offering, saying “Butterfield is pleased with the results of our recent Preference Share Offering.  Our objective was to create a capital buffer to help us withstand a severe and prolonged economic downturn.  We achieved that—raising $200 million of new tier 1 capital—without the need for the Government to invest in the issue.  We couldn’t have hoped for a better result.”  He added, “I would like to take this opportunity to acknowledge the Government’s support of the Bank and, once again, thank them for the guarantee they provided.  We believe it was a significant factor in the successful placement of the issue.”

 

Mr. Thompson also addressed the availability of Preference Shares, saying “The Preference Share issue was oversubscribed by a significant margin. Although oversubscription is not unusual with equity offerings of this nature, I believe the strong interest in this issue is a reflection of the pride that Bermudians have in their local Bank and the confidence they have in Butterfield’s and Bermuda’s futures. All subscribers who submitted their applications by the close of business on 11 June were able to participate in the issue, and we allocated the available Shares among those subscribers equitably; our goal was to ensure that participation in the issue was shared among a wide cross section of investors in our community.” 

 

For investors who did not receive the full allocation of Shares subscribed—but also available to the wider community—Butterfield is offering deposit products with special interest rates for a limited time.  For example, until 30 June, investors with a minimum investment of USD 10,000 can sign up for the US dollar Step Up term deposit, offering a cumulative interest payout of 7.46% over a three-year term.  Interested investors should visit their local Butterfield Banking Centre, contact their Relationship Managers or visit or the Butterfield website (www.butterfieldgroup.com) for details.

 

Notes:

 

Certain statements in this release may be deemed to include “forward-looking statements” and are based on management’s current expectations and are subject to uncertainty and changes in circumstances.  Actual results may differ materially from those included in these statements due to a variety of factors including worldwide economic conditions, success in business retention and obtaining new business and other factors.

 

This release is neither an offer to sell nor a solicitation of an offer to buy any securities and shall not constitute an offer, solicitation or sale in any jurisdiction in which such offer, solicitation or sale is unlawful.  Securities may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act and applicable state laws. 

 

The Bank of N.T. Butterfield & Son Limited (“Butterfield”) is Bermuda’s first and largest independent bank, and a specialist provider of international financial services. The Butterfield group offers a full range of community banking services in Bermuda, Barbados and the Cayman Islands, encompassing retail and corporate banking and treasury activities. In the wealth management area, the Butterfield group provides private banking, asset management and personal trust services from its headquarters in Bermuda and subsidiary offices in The Bahamas, the Cayman Islands, Guernsey, Hong Kong, Malta, Switzerland and the United Kingdom. Butterfield also provides services to corporate and institutional clients from offices in Bermuda, The Bahamas, the Cayman Islands and Guernsey, which include asset management and corporate trust services.

 

Butterfield is a publicly traded corporation with shares listed on the Bermuda and Cayman Islands stock exchanges.  Butterfield’s share price is published daily in The Royal Gazette (www.theroyalgazette.com) and is also available on Bloomberg Financial Markets (symbol: NTB BH) and the Bermuda Stock Exchange website (www.bsx.com).  Further details on the Butterfield Group can be obtained from our website at: www.butterfieldgroup.com.

 

Media Relations Contacts:   

 

Mark Johnson  
Assistant Vice President
The Bank of N.T. Butterfield & Son Limited
Phone: (441) 299 1624
Cellular: (441) 524 1025
Fax: (441) 295 3878
E-mail: mark.johnson@bm.butterfieldgroup.com

 

Stuart Roberts 
Senior Communications Consultant
The Bank of N.T. Butterfield & Son Limited
Phone: (441) 298 4610
Cellular: (441) 524 2057
Fax: (441) 295 3878
E-mail: stuart.roberts@bm.butterfieldgroup.com

 

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