Sale to Thomas H. Lee Partners conditioned on company selling more
By Angela McDaniels
Tacoma, Wash., May 31 - First BanCorp said Thomas H. Lee Partners, LP agreed to purchase about $180 million of common stock as part of a proposed $500 million to $550 million capital raise.
Under the definitive investment agreement, Thomas H. Lee Partners will pay $3.50 per share, which is a 31.64% discount from the company's $5.12 closing share price on May 30.
The $180 million sale is conditioned on the corporation selling $500 million to $550 million of common stock (including the Thomas H. Lee Partners investment), stockholder approval and any required regulatory or government approval.
The company plans to raise up to $35 million of the $500 million to $550 million total through a rights offering at the same $3.50 per share price.
Proceeds will be used to strengthen the company's capital base in order to meet regulatory requirements as well as for general corporate purposes.
First BanCorp is the bank holding company for FirstBank Puerto Rico. It is based in San Juan, Puerto Rico.
| Issuer: | First BanCorp
|
| Issue: | Common stock
|
| Amount: | $180 million
|
| Price: | $3.50
|
| Warrants: | No
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| Investor: | Thomas H. Lee Partners, LP
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| Pricing date: | May 31
|
| Stock symbol: | NYSE: FBP
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| Stock price: | $5.06 at close May 31
|
| Market capitalization: | $107.79 million
|
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