Doral prices $300 million convertible preferreds to yield 4.75%, up 30%

New York, Sept. 23 - Doral Financial Corp. priced $300 million of perpetual cumulative convertible preferred stock to yield 4.75% with a 30% initial conversion premium.

The deal, priced after the close Tuesday, came at the cheap end of talk which had put the yield at 4.25% to 4.75% with a 30% to 35% initial conversion premium.

Wachovia Securities is bookrunner of the Rule 144A deal. UBS Investment Bank, Brean Murray and Deutsche Bank Securities are co-managers. There is a greenshoe of $45 million.

The convertibles have a par value of $250. The conversion ratio is 4.1904 and the conversion price of $59.66.

The issue has a contingent conversion feature with a 120% threshold.

The San Juan, P.R. financial holding company will use $200 million of the proceeds to repay its 8.5% medium-term notes due July 8, 2004 at maturity and the remainder for general corporate purposes.

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