Pursuant to the amendment, the US Treasury has agreed to a reduction in the size of the capital raise required to satisfy the remaining substantive condition to the corporation’s ability to compel the conversion into shares of common stock of the Series G, Fixed Rate Cumulative Mandatorily Convertible Preferred Stock, held by the US Treasury.
The amendment agreed upon reduces the required capital amount to compel the conversion from $500m to $350m.
The amendment to the agreement with the US Treasury also includes an amendment that reduces the previously agreed-upon discount of 35% of the liquidation preference of the Series G Preferred Stock to 25%.
This amendment increases the number of shares of common stock into which the Series G Preferred Stock is convertible.
First BanCorp president and CEO Aurelio Aleman said that the reduction in the size of the capital raise required to convert into common stock the shares of Series G Preferred Stock is a result of the actions completed over the six-month period ended 30 September 2010 to deleverage and de-risk our balance sheet.
