Thomas H. Lee Partners investment inked as part of $550 million sale
By Devika Patel
Knoxville, Tenn., June 2 - First BanCorp gave further details about a $180 million investment agreement with Thomas H. Lee Partners, LP in an 8-K filed Thursday with the Securities and Exchange Commission. The agreement was negotiated on May 26.
The company will sell about $180 million of common shares to the investor. The per-share price, $3.50, represents a 27.54% discount to $4.83, the closing share price on May 25.
Proceeds will be used to strengthen the company's capital base in order to meet regulatory requirements as well as for general corporate purposes.
Thomas H. Lee Partners may also designate a person to the company's board of directors.
The deal will be conducted alongside an offering of stock and is conditioned on the company raising $500 million to $550 million between the private investment and the stock offering, which includes a $35 million rights offering.
The investment also assumes the conversion of about $425 million of the company's series G mandatorily convertible preferred stock into common stock. The preferreds are held by the U.S. Department of the Treasury.
First BanCorp, based in San Juan, Puerto Rico, is the holding company for FirstBank Puerto Rico, a state-chartered commercial bank operating in Puerto Rico, the Virgin Islands and Florida.
| Issuer: | First BanCorp
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| Issue: | Common stock
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| Amount: | $180 million (approximate)
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| Price: | $3.50
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| Warrants: | No
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| Investor: | Thomas H. Lee Partners, LP
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| Pricing date: | May 26
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| Stock symbol: | NYSE: FBP
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| Stock price: | $4.99 at close May 26
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| Market capitalization: | $107.79 million
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