First BanCorp, parent company for FirstBank Puerto Rico announced Friday it has completed its previously announced capital raise of $525 million of common stock to institutional investors Thomas H. Lee Partners, L.P. and Oaktree Capital Management, L.P.
Through the transaction announced earlier this year, First BanCorp issued 150 million shares of common stock at a purchase price of $3.50 per share. In addition, and simultaneous with the completion of the capital raise, the financial institution issued 32.9 million shares of common stock to the U.S. Department of the Treasury upon conversion of all of the Corporation’s outstanding Fixed Rate Cumulative Mandatorily Convertible Preferred Stock, Series G.
“We are excited to have completed this transaction,” First BanCorp President and CEO Aurelio Alemán said. “We are grateful to our employees and directors for their dedication and hard work; to our customers for their loyalty through this long journey; to our stockholders for their continuous support throughout all the steps required to complete this process and to the investors for their commitment towards our franchise.”
“The completion of the capital raise solidifies our competitive position as the second largest financial institution in Puerto Rico and as the leading bank in the U.S. Virgin Islands,” he said. “The new capital strengthens our franchise for future growth while enabling us to continue supporting our clients and the communities we serve.”
Following the closing of the transaction the bank’s board will add representatives from the two institutional investors: Thomas M. Hagerty, a managing director at Thomas H. Lee Partners, L.P., and Michael Harmon, a managing director at Oaktree Capital Management, L.P.
In addition, the board has elected to appoint former Popular Inc. executive Roberto Herencia to serve as non-executive chairman of its Board of Directors and, subject to pending regulatory approvals, to serve as non-executive chairman of the Corporation’s Board of Directors. Herencia is president and CEO of BXM Holdings, a fund specializing in community bank investments
“We look forward to welcoming Roberto, Tom and Mike to our Board of Directors, their proven leadership skills and financial and operating expertise will bring very valuable contributions to the Board and the performance of the corporation,” Alemán said.
First BanCorp’s placement agent for the capital raising efforts was Sandler O’Neill + Partners, L.P.