Popular, Inc. Announces Pricing of Public Offering of $450,000,000 Principal Amount of 7.000% Senior Notes due 2019
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.