Carlyle, Robertson Among New Owners Of Bermuda Bank

Mar 3 2010 | 8:43am ET

An investor group led by the Canadian Imperial Bank of Commerce and the Carlyle Group has taken a majority stake in Bermuda’s biggest independent bank.

The CIBC-Carlyle group, which includes Tiger Management founder Julian Robertson, has poured $550 million into the Bank of N.T. Butterfield. CIBC and Carlyle each contributed $150 million, with each owning a 22.5% stake in the bank. All told, the investor group now owns 82.5% of Butterfield.

Because of the recapitalization, Fitch Ratings has downgraded the bank’s Individual Rating to 'F' from 'C'. At the same time, however, Fitch has affirmed the bank’s long-term Issuer Default Rating (IDR) at 'A-' and short-term IDR at 'F1'.

"The individual downgrade reflects Fitch's view that the bank's level of embedded losses in the securities portfolio necessitated the capital raise. Additionally, BNTB's operating challenges were isolated and not reflective of Bermuda's banking sector conditions," the ratings agency wrote in a press release.

Butterfield has $9.6 billion in assets and offers retail and corporate banking and treasury services in Bermuda, Barbados and the Cayman Islands.


In Depth

Exotic Assets: Investing In Rare Violins

Jan 17 2017 | 4:43pm ET

By definition, alternative investments include exotic assets far beyond your typical...

Lifestyle

'Tis the Season: Wall Street Holiday Parties Back In Fashion

Dec 22 2016 | 9:23pm ET

Spending on Wall Street holiday parties has largely returned to pre-2008 levels...

Guest Contributor

The Trump Administration: What It Could Mean for Carried Interest

Jan 19 2017 | 5:25pm ET

The arrival of the Trump administration brings the potential for a repeal of the...

 

From the current issue of

Versum Materials (VSM), with a market capitalization of $2.7 billion, enables chipmakers to achieve higher performance at lower cost with enhanced reliability. Versum is a leading global provider of electronic materials for the integrated circuit and flat-panel display markets.