Banco Popular ups mandatory convertible retail offering to €700 million from €500 million

By Rebecca Melvin

New York, Oct. 13 - Banco Popular has increased the size of its four-year mandatory convertible bond offering for retail investors to €700 million from €500 million of bonds, according to a regulatory news release.

The bonds will be convertible at the highest of Banco Popular's book value per share as of June 30, or €5.84, and 110% of the highest of the volume-weighted average price of five working days post disbursement and 15 working days pre-disbursement.

The bond placement began in mid-September. Interest on the bonds will be 7% during the first year and Euribor plus 400 basis points for the remaining years.

Holders will have the option to exchange their bonds on each anniversary of the issuance, and they will be mandatorily convertible upon maturity in October 2013.

Banco Popular is Spain's third-largest listed bank.

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