OFG looking to raise some $45.7M through stock sale

Written by  //  October 26, 2012  //  Banking, Financial District  //  No comments

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Oriental is moving forward with a stock sale that will fund a portion of its acquisition of BBVA’s Puerto Rico operations.

Oriental Financial Group Inc. announced Thursday it is looking to raise some $45.7 million from the sale of 4,390,243 shares of its common stock at a price of $11.10 per share.

The company intends to use the proceeds from the sale to fund a portion of the purchase price for its acquisition of the Puerto Rico based operations of Banco Bilbao Vizcaya Argentaria, S.A., a transaction it announced in June. OFG offered $500 million in cash.

The common stock pricing comes a day after Oriental announced plans to sell stock. Oriental has granted the underwriters a 30-day option to purchase up to an additional 439,024 shares of its common stock.

Jefferies & Company Inc. is serving as the sole book-running manager for the offering. Keefe, Bruyette & Woods Inc. is serving as lead manager and Oriental Financial Services Corp. is serving as co-manager.

The net proceeds from the offering, after deducting underwriting discounts and commissions and estimated offering expenses, will be approximately $45.7 million (or approximately $50.5 million if the underwriters exercise their option to purchase additional shares in full), Oriental said in a release issued late Thursday.

The stock sale is expected to close Oct. 31, 2012.

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