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Doral gets tenders for $52.2 million 4.75% convertible preferreds
By Jennifer Chiou
New York, Dec. 11 - Doral Financial Corp. announced that it received tenders for $52.2 million, or 20%, of its 4.75% cumulative perpetual convertible preferred stock in the offer to issue shares in exchange for up to $100 million liquidation preference of the preferreds.
As a result, the company said it will issue 4.3 million new shares of Doral common stock.
The offer ended at 11:59 p.m. ET on Dec. 9.
The tendered amount covers 208,854 preferreds.
Doral said it also received consents from holders of only 644,499, or 60%, of the preferreds. It had needed consents from holders of two-thirds of the securities to amend the certificate of designation.
Because of this, the company will maintain the requirement that in the event full dividend arrearages on the convertible preferreds have not been declared and paid, future exchange transactions for all series of its preferred stock will be offered on a same terms with no prioritization or premium for convertible preferreds.
Each preferred tendered and accepted was exchanged for 20.59 shares of common stock.
The exchange ratio was based on $87.50 per preferred, which was equal to 35% of the $250 liquidation preference per preferred, and a common stock price of $4.25 per share.
The company previously said it would issue no more than 8,235,294 shares of common stock in the exchange offer.
The dealer manager was UBS Investment Bank (888 719-4210 or 203 719-4210), and the exchange agent and information agent was MacKenzie Partners, Inc. (800 322-2885, 212 929-5500 or tenderoffer@mackenziepartners.com).
San Juan, Puerto Rico-based Doral Financial is the holding company for Doral Bank.
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