By Sheri Kasprzak
New York, May 17 - Doral Financial Corp. plans to close a $610 million private placement of stock.
The shares will be sold to a newly formed entity called Doral Holdings made up of Bear Stearns Merchant Banking, Marathon Asset Management, Perry Capital, the D.E. Shaw Group, Tennenbaum Capital Partners, Eton Park Capital Management, Goldman Sachs & Co., Canyon Capital Advisors and GE Asset Management.
The investors will receive 968,253,968 shares at $0.63 each.
Once the offering is completed, the holding company will own 90% of Doral's common stock.
Proceeds from the deal will allow Doral to repay at maturity $625 million of floating-rate senior notes due July 20, 2007. The funds will also allow the company to settle an existing consolidated securities class action and shareholder derivative suit.
Based in San Juan, Puerto Rico, Doral is a financial services company with mortgage, banking, insurance and institutional securities segments.
Issuer: | Doral Financial Corp.
|
Issue: | Stock
|
Amount: | $610 million
|
Shares: | 968,253,968
|
Price: | $0.63
|
Warrants: | No
|
Investors: | Doral Holdings (made up of Bear Stearns Merchant Banking, Marathon Asset Management, Perry Capital, the D.E. Shaw Group, Tennenbaum Capital Partners, Eton Park Capital Management, Goldman Sachs & Corp., Canyon Capital Advisors and GE Asset Management)
|
Announcement date: | May 17
|
Stock symbol: | Amex: DRL
|
Stock price: | $1.24 at close May 16
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.