SAN JUAN, Puerto Rico--(BUSINESS WIRE)--
Popular, Inc. (“Popular”) (NASDAQ:BPOP) announced today that it has
agreed to sell an aggregate of $450,000,000 principal amount of its
7.000% Senior Notes due 2019 (the “Senior Notes”). Popular intends to
use approximately $400 million of the net proceeds from the offering
plus available cash to redeem its junior subordinated debentures held by
Popular Capital Trust III (the “Trust”), at a redemption price of 100%
of the principal amount outstanding, plus accrued and unpaid interest.
The Trust will in turn redeem the $935 million of its trust capital
securities held by the U.S. Treasury. The trust capital securities were
issued to the U.S. Treasury in August 2009 in exchange for the 935,000
shares of Popular’s Series C preferred stock initially issued in
December 2008 to the U.S. Treasury under the TARP Capital Purchase
Program. Popular intends to use the remaining net proceeds from the
offering to provide additional liquidity to the holding company.
The Senior Notes will bear interest at a rate of 7% per year, payable on
January 1 and July 1 of each year, commencing on January 1, 2015. The
Senior Notes will mature on July 1, 2019.
J.P. Morgan Securities LLC is serving as Capital Advisor related to
Popular’s capital plan and TARP repayment acting as the sole
book-running manager of the offering. Goldman, Sachs & Co. is acting as
senior co-manager and Barclays Capital Inc., Credit Suisse Securities
(USA) LLC, Deutsche Bank Securities Inc., Drexel Hamilton, LLC,
Guggenheim Securities, LLC, Keefe, Bruyette & Woods, Inc., Nomura
Securities International, Inc., Popular Securities, LLC, RBC Capital
Markets, LLC, Sandler O’Neill & Partners, L.P. and Wells Fargo
Securities, LLC are acting as co-managers of the offering. The offering
is being conducted as a public offering by means of a prospectus
supplement filed as part of an effective shelf registration statement
filed with the Securities and Exchange Commission (“SEC”) on Form S-3.
Popular expects to close the offering on or about July 1, 2014.
Before investing in the offering, interested parties may read the
prospectus supplement and the accompanying prospectus for the offering
and the other documents Popular has filed with the SEC, which are
incorporated by reference in the prospectus supplement and the
accompanying prospectus and provide more complete information about
Popular and the offering. Copies of the preliminary prospectus
supplement and the accompanying prospectus relating to the offering may
be obtained, when available, from J.P. Morgan Securities LLC, 383
Madison Avenue, New York, NY 10179, Attention: Investment Grade
Syndicate Desk or by calling (212)-834-4533. Electronic copies of the
prospectus supplement may be obtained by visiting EDGAR on the SEC's
website at http://www.sec.gov/.
This announcement does not constitute an offer to sell or a solicitation
of an offer to buy nor shall there be any sale of the securities in any
state or jurisdiction in which such offer, solicitation or sale would be
unlawful prior to registration or qualification under the securities
laws of any such state or jurisdiction. This press release is being
issued pursuant to and in accordance with Rule 134 under the Securities
Act of 1933, as amended. Any offer, if at all, will be made only by
means of a prospectus supplement and the accompanying prospectus,
forming a part of the effective registration statement.
About Popular, Inc.
Founded in 1893, Popular, Inc. is the leading banking institution by
both assets and deposits in Puerto Rico and ranks among the top 50 U.S.
banks by assets. In the United States, Popular has established a
community-banking franchise that does business as Popular Community
Bank, providing a broad range of financial services and products with
branches in New York, New Jersey, Illinois, Florida and California.
The information included in this news release contains certain
forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995. These statements are based on
management’s current expectations and involve certain risks and
uncertainties that may cause actual results to differ materially from
those expressed in forward-looking statements. Factors that might cause
such a difference include, but are not limited to (i) the rate of growth
in the economy and employment levels, as well as general business and
economic conditions; (ii) changes in interest rates, as well as the
magnitude of such changes; (iii) the fiscal and monetary policies of the
federal government and its agencies; (iv) changes in federal bank
regulatory and supervisory policies, including required levels of
capital and the impact of proposed capital standards on our capital
ratios; (v) the impact of the Dodd-Frank Wall Street Reform and Consumer
Protection Act on our businesses, business practices and cost of
operations; (vi) regulatory approvals that may be necessary to undertake
certain actions or consummate strategic transactions such as
acquisitions and dispositions; (vii) the relative strength or weakness
of the consumer and commercial credit sectors and of the real estate
markets in Puerto Rico and the other markets in which borrowers are
located; (viii) the performance of the stock and bond markets; (ix)
competition in the financial services industry; (x) additional Federal
Deposit Insurance Corporation assessments; (xi) the resolution of our
dispute with the FDIC under our loss share agreement entered into in
connection with the Westernbank-FDIC assisted transaction; and (xiii)
possible legislative, tax or regulatory changes. For a discussion of
such factors and certain risks and uncertainties to which Popular is
subject, see Popular’s Annual Report on Form 10-K for the year ended
December 31, 2013, Quarterly Report on Form 10-Q for the three months
ended March 31, 2014 and its other filings with the U.S. Securities and
Exchange Commission. Other than to the extent required by applicable
law, including the requirements of applicable securities laws, Popular
assumes no obligation to update any forward-looking statements to
reflect occurrences or unanticipated events or circumstances after the
date of such statements.
Brett Scheiner, 212-417-6721
Teruca RullÁn, 787-281-5170 or 917-679-3596 (mobile)
Source: Popular, Inc.