Central Pacific Bank took another big step toward solidifying its financial future yesterday.

The bank said it got the final $127.8 million in commitments from private investors to complete its $325 million capital-raising plan.

The state’s fourth-largest bank has been under a mandate since December 2009 by federal and state regulators to improve its capital position, asset quality, liquidity and management oversight.

The bank said it expects its recapitalization will close in the first quarter.

The bank previously received $197.2 million in commitments from two lead investors, the Carlyle Group and an affiliate of Anchorage Capital Group LLC. They plan to invest $98.6 million each.

Earlier this week, Central Pacific restructured a deal with the U.S. Treasury to exchange $135 million in preferred shares for common stock. The recapitalization allows the Treasury, Carlyle and Anchorage, and the latest investors to buy Central Pacific common stock at 50 cents a share. Although the recapitalization will dilute existing shares, the bank said it is in the best interest of investors to have the bank recapitalized.

Central Pacific’s shares closed up 10 cents, or 7 percent, at $1.53 yesterday on the New York Stock Exchange. The announcement was made after the market closed.

"We are very pleased that our private placement is fully subscribed," said John Dean, executive chairman of Central Pacific. "Upon receipt of the requisite regulatory approvals, we believe we will be in a position to close on our recapitalization transaction."

Central Pacific said the additional $127.8 million was secured through a private placement that included investments by some directors and officers of the company.

When the transaction closes, Central Pacific said, it will offer a $20 million rights plan to shareholders that will allow them to purchase a set number of common shares at 50 cents a share. Those eligible must be shareholders of record as of the close of business on the trading day immediately preceding the closing date of the recapitalization.

Central Pacific also plans to conduct a 1-for-20 reverse stock split at that time, meaning 20 shares will be converted into one share.