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Doral receives tenders of $105.6 million preferreds in exchange offer
New York, June 9 - Doral Financial Corp. said it received tenders of a total of $105.6 million liquidation amount of preferred shares in its offer to exchange those securities for common stock.
As a result, it will issue 3.95 million new shares.
The exchange offer expired on June 8.
By the deadline, holders had tendered 298,986 shares of Doral's 4.75% perpetual cumulative convertible preferred stock, 228,173 shares of its 7% noncumulative monthly income preferred stock, series A, 217,339 shares of its 8.35% noncumulative monthly income preferred stock, series B, and 560,798 shares of its 7.25% noncumulative monthly income preferred stock, series C.
In the offer, Doral was offering to exchange up to $155.25 million of its $345 million of 4.75% convertible preferreds with a liquidation amount of $250 per share, up to $33.6375 million of its $74.75 million 7% series A preferreds with a liquidation amount of $50 per share, up to $22.5 million of its $50 million 8.35% series B preferreds with a liquidation amount of $25 per share, and up to $46.575 million of its $103.5 million of 7.25% series C preferreds with a liquidation amount of $25 per share.
The 4.75% convertibles had first priority, with the remainder being equally ranked.
For the 4.75% convertibles, Doral was offering 8.762 shares plus $12.50 in cash for a total consideration of $50.00, or 20% of the liquidation amount. The total is based on a $4.28 stock price, the average for the 20 days before the offer began.
For the 7% preferreds, Doral was offering 2.161 shares plus $2.00 in cash for total consideration of $11.25, or 22.5% of the liquidation amount.
For the 8.35% and 7.25% preferreds, Doral was offering 1.081 shares plus $1.00 in cash for total consideration of $5.63, or 22.5% of the liquidation amount.
Doral is the San Juan, P.R., based parent of Doral Bank.
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