First BanCorp has completed the sale of $400 million of preferred stock to the US Department of the Treasury under the Treasury’s troubled assets relief program’s capital purchase programme.
The corporation has issued and sold to the Treasury 400,000 shares of the corporation’s fixed rate cumulative perpetual preferred stock, series F, at $1,000 liquidation preference per share, and a warrant to purchase up to 5.84 million shares of the corporation’s common stock at an exercise price of $10.27 per share.
The preferred stock qualifies as tier one regulatory capital and has a 5% coupon for the first five years and a 9% coupon thereafter. The warrant has a 10-year term and is immediately exercisable and transferable, subject to certain conditions.
Luis Beauchamp, chairman and CEO of First BanCorp, said: The purchase of our preferred stock and warrant by the Treasury reflects our financial soundness and further strengthens the already well-capitalised position of First BanCorp. The corporation will continue to work side by side with its customers to provide them the financial support they need to operate during the current economic climate.
We will place particular focus and attention on our lending activities in Puerto Rico and the Virgin Islands, our main markets, so that, in conjunction with private and public sector initiatives, our communities can thrive and prosper.
