First BanCorp prices offer to swap five series of perpetual preferreds

By Susanna Moon

Chicago, Aug. 23 - First BanCorp said it will issue 11.6525 common shares for each noncumulative perpetual monthly income preferred share tendered in the company's exchange offer.

The company will exchange up to 256,401,610 newly issued common shares for the following series of preferreds:

• $90 million of 7.125% noncumulative perpetual monthly income preferred stock, series A;

• $75 million of 8.35% noncumulative perpetual monthly income preferred stock, series B;

• $103.5 million of 7.4% noncumulative perpetual monthly income preferred stock, series C;

• $92 million of 7.25% noncumulative perpetual monthly income preferred stock, series D; and

• $189.6 million of 7% noncumulative perpetual monthly income preferred stock, series E.

The exchange ratio was based on an exchange value of $13.75 per preferred divided by $1.18.

The price was to be the higher of $1.18 and the average volume-weighted average price of common shares during the five trading day period ending on the second business day immediately preceding the expiration date of the exchange offer.

The closing stock price (NYSE: FBP) on Aug. 20 was $0.51, which is less than the relevant price.

The liquidation preference per preferred is $25.

The exchange offer will expire at 11:59 p.m. ET on Aug. 24. It began on July 16.

UBS Investment Bank (888 719-4210 or collect 203 719-4210) is the dealer manager, and BNY Mellon Shareowner Services (800 777-3674 or collect 201 680-6579) is the exchange agent and information agent.

First Bancorp is the bank holding company for FirstBank Puerto Rico. It is based in Santurce, Puerto Rico.

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