Popular (BPOP) Plans to Issue Up To 390M Shares of Common in Exchange for Series A, B and Trust Preferred Stock

June 9, 2009 8:11 AM EDT

Popular, Inc. (NASDAQ: BPOP) today announced that it plans to offer to issue up to 390 million shares of common stock in exchange for its Series A Preferred Stock, Series B Preferred Stock and Trust Preferred Securities. If eligible holders of those securities participate in the proposed exchange offer to the maximum extent permitted by the Corporation, the Corporation's Tier I common equity would increase by approximately $1.2 billion. Based on the "high participation" scenario presented in the Corporation's prospectus referred to below, the Corporation's pro forma March 31, 2009 Tier I common ratio would have been 7.44% after giving effect to the consummation of the Exchange Offer.

The Corporation also announced that it will suspend dividends on shares of its common stock and on its Series A Preferred Stock and Series B Preferred Stock after paying the previously declared June 2009 preferred stock dividends on June 30, 2009. The Corporation expects to continue to make distributions on its Trust Preferred Securities in accordance with their current terms, although there can be no assurance that those distributions will continue.

In connection with the proposed exchange offer, the Corporation is seeking the consent of holders of shares of its Series A and Series B Preferred Stock to issue to the U.S. Treasury shares of Senior Preferred Stock, in exchange for the Corporation's Series C Preferred Stock currently held by the Treasury under the TARP.

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