Agreement inked on same terms as $180 million Thomas H. Lee investment
By Devika Patel
Knoxville, Tenn., June 29 - First BanCorp announced an investment agreement with Oaktree Capital Management, LP. The deal will raise about $175.5 million and will be conducted on similar terms to those of a $180 million agreement the company negotiated with Thomas H. Lee Partners, LP on May 26.
The company will sell common shares to the investor at $3.50 per share; the per-share price represents a 3.32% discount to $3.62, the closing share price on June 27.
Proceeds will be used to strengthen the company's capital base in order to meet regulatory requirements, as well as for general corporate purposes.
Oaktree may also designate a person to serve on the company's board of directors. The investment is conditioned upon the company raising at least $500 million but no more than $550 million of new capital, the conversion of its series G preferred stock into common stock and necessary approvals.
The company also said it has entered into investment agreements with institutional investors and to raise about $164 million in a stock sale, which, together with the Thomas H. Lee Partners and Oaktree investments, totals $515 million in commitments.
"With the aggregate amount of these commitments we now exceed the minimum $500 million required for completion of the capital raise," president and chief executive officer Aurelio Aleman said in a press release.
"The total amount of the capital raise will enable us to compel the conversion of the series G preferred stock, substantially strengthen our capital ratios and reinforces First BanCorp's position as the second largest banking franchise in Puerto Rico."
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
|
| Issue: | Common stock
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| Amount: | $175.5 million (approximate)
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| Price: | $3.50
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| Warrants: | No
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| Investor: | Oaktree Capital Management, LP
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| Pricing date: | June 28
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| Stock symbol: | NYSE: FBP
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| Stock price: | $3.62 at close June 27
|
| Market capitalization: | $94.8 million
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