First BanCorp (the “Corporation”) (NYSE: FBP), the holding company for FirstBank Puerto Rico (the “Bank”), today announced that it has completed its previously announced capital raise of $525 million of common stock to institutional investors. In the transaction, the Corporation 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 Corporation issued 32,941,797 shares of common stock to the United Stated Department of the Treasury upon conversion of all of the Corporation’s outstanding Fixed Rate Cumulative Mandatorily Convertible Preferred Stock, Series G.
President and Chief Executive Officer Aurelio Alemán said, “We are excited to have completed this transaction. 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 Virgin Islands. 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 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., will join the Bank’s Board of Directors and, subject to pending regulatory approvals, the Corporation’s Board of Directors. In addition, the Board has elected to appoint Roberto Herencia to serve as non-executive chairman of the Bank’s Board of Directors and, subject to pending regulatory approvals, to serve as non-executive chairman of the Corporation’s Board of Directors. Mr. Alemán said, “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.”