First BanCorp to issue stock in exchange for five preferreds series

By Susanna Moon

Chicago, July 16 - First BanCorp said it began an offer to exchange up to 256,401,610 newly issued common shares for five series of its noncumulative perpetual monthly income preferred stock.

The preferreds covered by the exchange offer are as follows:

• $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 offer will expire at 11:59 p.m. ET on Aug. 24.

The exchange ratio will be based on an exchange value of $13.75 per preferred divided by the higher of $1.18 or 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.

First BanCorp said it will issue no more than 11.6525 common shares in exchange for each preferred. The liquidation preference per preferred will be $25.

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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