Popular, Inc. Closes Public Offering of $1.15 Billion in Depositary Shares
April 19 2010 - 4:15PM
Business Wire
Popular, Inc. (NASDAQ:BPOP) announced today that it has raised
$1.15 billion through the sale of 46,000,000 depositary shares,
each representing a 1/40th interest in a share of Contingent
Convertible Perpetual Non-Cumulative Preferred Stock, Series D, no
par value, $1,000 liquidation preference per share. The offering,
including $150 million in depositary shares purchased upon exercise
of the underwriters’ over-allotment option, closed today.
The net proceeds from the public offering amounted to
approximately $1.1 billion, after deducting the underwriting
discount and estimated offering expenses.
The preferred stock represented by depositary shares will
automatically convert into shares of Popular common stock at a
conversion rate of 8.3333 shares of common stock for each
depositary share on the fifth business day after Popular’s common
shareholders approve an amendment to increase the number of
authorized shares. The conversion of the preferred stock would
result in the issuance of approximately 383 million additional
shares of common stock.
Popular intends to use the net proceeds of the offering for
general corporate purposes, including investments in, or extensions
of credit to, its subsidiaries to increase their capital, including
positioning Popular to participate in FDIC-assisted
transactions.
The depositary shares are being offered pursuant to Popular’s
existing shelf registration statement, which became automatically
effective upon filing with the Securities and Exchange Commission.
A prospectus supplement and accompanying prospectus describing the
terms of the offering have been filed with the Securities and
Exchange Commission. A copy of the supplement prospectus and
accompanying prospectus is also available at Popular’s website:
www.popular.com/investors. Morgan Stanley acted as the sole
book-running manager for the offering. Keefe, Bruyette & Woods,
UBS Investment Bank and Popular Securities acted as
co-managers.
This announcement does not constitute an offer to purchase or a
solicitation of an offer to sell securities, nor shall there be any
sales of these securities in any jurisdiction in which such offer,
solicitation or sale would be unlawful prior to registration or
qualification under the securities law of such jurisdiction.
The information included in this news release contains certain
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. These statements are
based on management’s current expectations and involve certain
risks and uncertainties that may cause actual results to differ
materially from those expressed in forward-looking statements. For
a discussion of factors that might cause such differences and
certain risks and uncertainties to which Popular is subject, see
Popular’s Annual Report on Form 10-K for the year ended December
31, 2009 as well as its filings with the U.S. Securities and
Exchange Commission. Other than to the extent required by
applicable law, including the requirements of applicable securities
laws, Popular assumes no obligation to update any forward-looking
statements to reflect occurrences or unanticipated events or
circumstances after the date of such statements.
About Popular
Founded in 1893, Popular, Inc. (NASDAQ:BPOP) is the leading
banking institution by both assets and deposits in Puerto Rico and
ranks 38th by assets among U.S. banks.
In the United States, Popular has established a community
banking franchise providing a broad range of financial services and
products with branches in New York, New Jersey, Illinois, Florida
and California.
Popular also provides processing-technology services through its
subsidiary EVERTEC, which processes approximately 1.1 billion
transactions annually in the Caribbean and Latin America.
An electronic version of this press release can be found at the
Corporation’s website, www.popular.com.
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