By Sheri Kasprzak
New York, Feb. 16 - First BanCorp secured $94,812,500 from a private placement.
Scotiabank agreed to buy 9.25 million shares at $10.25 each, a 5% premium to the volume-weighted average closing stock price over the 30 trading days ended Jan. 30.
Following the placement, Scotiabank will own 10% of First BanCorp's outstanding stock.
UBS Investment Bank was the placement agent.
The deal is set to close within the next 90 days.
The two companies are also in talks for a potential acquisition. Scotiabank has agreed to give notice to First BanCorp during the 18 months after the investment of its plans to acquire First BanCorp. First BanCorp has also agreed to provide notice to Scotiabank of any proposed acquisitions.
Based in San Juan, First BanCorp is a state-chartered commercial bank with operations in Puerto Rico, the Virgin Islands and Florida.
| Issuer: | First BanCorp
|
| Issue: | Stock
|
| Amount: | $94,812,500
|
| Shares: | 9.25 million
|
| Price: | $10.25
|
| Warrants: | No
|
| Investor: | Scotiabank
|
| Agent: | UBS Investment Bank
|
| Announcement date: | Feb. 16
|
| Stock symbol: | NYSE: FBP
|
| Stock price: | $10.64 at close Feb. 15
|
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