Doral Financial begins exchange offer for four series of preferreds

By Angela McDaniels

Tacoma, Wash., Feb. 11 - Doral Financial Corp. is offering to exchange up to 16.5 million shares of its common stock for four series of its preferred stock, according to an S-4 filing with the Securities and Exchange Commission.

The offer includes the company's:

• $63,341,350 liquidation preference of 7% non-cumulative monthly income preferreds, series A;

• $44,566,525 of 8.35% non-cumulative monthly income preferreds, series B;

• $89,480,050 of 7.25% non-cumulative monthly income preferreds, series C; and

• $218.04 million of 4.75% perpetual cumulative convertible preferreds.

Holders will receive 4.12 shares of common stock for each $50 liquidation amount of 7% preferreds, 2.06 shares for each $25 liquidation amount of 8.35% preferreds or 7.25% preferreds and 20.59 shares for each $250 liquidation amount of convertible preferreds.

In each case, the value of the shares is equal to approximately 26% of the liquidation preference of the preferreds being exchanged.

Tendered preferreds may be subject to proration.

The exchange offer will expire at 11:59 p.m. ET on March 12.

The company first announced plans for the exchange offer on Dec. 22.

UBS Investment Bank (888 719-4210 or 203 719-4210) is the dealer manager, and MacKenzie Partners, Inc. (800 322-2885 or 212 929-5500) is the information agent and exchange agent.

San Juan, Puerto Rico-based Doral Financial is the holding company for Doral Bank.

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