BankingFinancial District

OFG looking to raise some $45.7M through stock sale

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.

Author Details
Business reporter with 25 years of experience writing for weekly and daily newspapers, as well as trade publications in Puerto Rico. My list of former employers includes Caribbean Business, The San Juan Star, and the Puerto Rico Daily Sun, among others. My areas of expertise include telecommunications, technology, retail, agriculture, tourism, banking and most other areas of the economy.

Comment here