By Rebecca Melvin
New York, April 13 - Popular Inc. priced an upsized offering of $1 billion of convertible common equivalent securities on Tuesday under an existing shelf registration via Morgan Stanley as sole bookrunner, according to a company news release.
The offering was initially seen at about $900 million in size.
Popular Securities, Keefe Bruyette & Woods and UBS Investment Bank acted as co-managers of the offering.
Each common equivalent security consists of a $25 depositary share representing a 1/40th interest in a share of contingent convertible perpetual non-cumulative preferred stock, series D.
The preferred stock represented by the depositary shares will automatically convert into shares of Popular common stock at a conversion rate of 8.3333 shares of common stock for each depositary share on the fifth business day after Popular common shareholders approve an amendment to increase the number of authorized shares.
Popular is required to hold a shareholder vote by Sept. 15.
If shareholder approval is not obtained, then the dividend will be an as-converted dividend with a 13% step up, plus an additional 1% step up every six months for a 16% maximum.
Popular intends to use proceeds of the offering for general corporate purposes, including investments in, or extensions of credit to, its subsidiaries to increase their capital, including positioning Popular to participate in Federal Deposit Insurance Corp.-assisted transactions.
San Juan, Puerto Rico-based Popular is a financial services company.
| Issuer: | Popular Inc.
|
| Issue: | Common equivalent securities
|
| Amount: | $1 billion, upsized from $900 million
|
| Bookrunner: | Morgan Stanley
|
| Co-managers: | Popular Securities, Keefe, Bruyette & Woods and UBS Investment Bank
|
| Price: | $25 per depositary share
|
| Conversion rate: | 8.3333 shares per depositary share
|
| Pricing date: | April 13
|
| Distribution: | Registered, off the shelf
|
| Stock symbol: | Nasdaq: BPOP
|
| Stock price: | $3.50 at close April 13
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
