Popular amends 7%, 6.66% notes to extend maturity, increase coupons

By Jennifer Chiou

New York, March 19 - Popular, Inc. entered into supplemental indentures on March 15 to amend the terms of its $75 million of 7% notes due 2011 and $25 million of 6.66% notes due 2011, according to an 8-K filing with the Securities and Exchange Commission.

With the changes, the indentures now state that:

• The notes mature on March 26, 2012 instead of on Sept. 26, 2011;

• The right of the 6.66% noteholders to put back their notes prior to maturity is eliminated;

• The provision requiring an adjustment in the interest rate on the notes based on changes in the credit ratings of Popular is also eliminated; and

• The notes now bear interest at an increased fixed rate of 13% per year.

Prior to these amendments, based on the interest rate adjustment provision, the 7% notes bore interest at 12% per year while the 6.66% notes bore interest at 11.66% per year.

The company said it received consents from holders of all of the notes.

Popular is a financial services provider based in San Juan, Puerto Rico.

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