First BanCorp plans exchange offer for five series of preferred stock

By Jennifer Chiou

New York, Dec. 12 - First BanCorp announced plans for an exchange offer under which it will issue new common shares for any and all of its five series of noncumulative perpetual monthly income preferred stock.

The affected securities include its 7.125% series A preferreds, 8.35% series B preferreds, 7.4% series C preferreds, 7.25% series D preferreds and 7% series E preferreds.

According to a news release, the preferreds may not be exchanged until the registration statement becomes effective.

Also, the company is seeking authorization from holders of two-thirds of the preferred stock and holders of a majority of its outstanding common shares to amend the preferred stock certificates of designation to remove the provision that entitles holders to appoint two additional directors when First BanCorp has not paid preferred dividends for 18 monthly periods, as is the case now.

The registration statement will be available on the Securities and Exchange Commission's website. The prospectus is available from First BanCorp (attn: Lawrence Odell, P.O. Box 9146, San Juan, Puerto Rico, 00908-0146; 787 729-8041; or lawrence.odell@firstbankpr.com).

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.

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