Popular Inc. announced the completion of its $500 million accelerated common stock repurchase transaction announced for 2020.
The completion came earlier than expected, as the counterparty in the transaction exercised its right under the agreement to implement the early termination date clause when the trading price of Popular’s common stock fell below a specified level due to the effects of the COVID-19 pandemic on the global markets, bank officials said.
The final settlement of the accelerated stock repurchase transaction, which was originally expected to happen during the fourth quarter of 2020, was moved up to the second quarter of this year.
Under the accelerated stock repurchase, Popular Inc. prepaid $500 million and on Feb. 3, 2020 it received from the counterparty an initial delivery of 7,055,919 shares of common stock.
Popular Inc. then received 4,763,216 additional shares of common stock after the early termination date, as part of the transaction’s final settlement, for a combined total of 11,819,135 shares at an average price per share of $42.30.
Popular Inc. wrote up the accelerated stock repurchase as a treasury stock transaction, it confirmed.