Oriental Financial Group Raises $68 Million in Two Issues
October 27 2003 - 12:34PM
PR Newswire (US)
Oriental Financial Group Raises $68 Million in Two Issues SAN JUAN,
Puerto Rico, Oct. 27 /PRNewswire-FirstCall/ -- Oriental Financial
Group Inc. today announced that it recently raised $68.3 million
through the issuance of trust redeemable preferred securities and
non-cumulative monthly income preferred stock, with proceeds to be
used to support the Group's strategic growth plan. On September 17,
2003, the Group raised $35.0 million through the sale of trust
redeemable preferred securities issued by Oriental Financial (PR)
Statutory Trust II, a wholly owned special purpose subsidiary of
the Group. The Group also raised $33.3 million on September 30,
2003, through the sale of 1.38 million shares of 7.0%
Non-cumulative Monthly Income Preferred Stock, Series B, issued by
the Group. "These instruments provide us with highly cost effective
capital that further strengthens our equity base as well as our
ability to expand our banking and financial services capabilities
in pursuit of our growth plans," said Jose Enrique Fernandez,
Chairman, President and CEO. The Series B Preferred Stock
(NYSE:OFGPrB) is redeemable at the Group's option beginning on
October 31, 2008. In general, Puerto Rico residents will be subject
to a 10% income tax on dividends paid on such preferred stock.
Non-residents who claim an exemption will not be subject to Puerto
Rico withholding tax although they may be subject to income
taxation in their place of residence. The Group intends to use the
net proceeds of the Series B Preferred Stock for general corporate
purposes, which may include making capital contributions and loans
to its banking and non-banking subsidiaries, establishing new
branches, and increasing working capital. The Series B Preferred
Stock were sold to the public pursuant to a registration statement
filed with and declared effective by the Securities and Exchange
Commission. The trust redeemable preferred securities have a par
value of $35 million and bear interest of 4.09%. Said rate is
adjusted quarterly beginning on December 17, 2003 at a rate based
on 3-month LIBOR plus 2.95%. The securities mature on December 17,
2033 and may be redeemed at par after five years. The trust
redeemable preferred securities have not been registered under the
Securities Act of 1933, the Puerto Rico Uniform Securities Act, or
any state securities law, and have been offered exclusively outside
the United States and Puerto Rico. The trust redeemable preferred
securities may not be offered or sold in the United States and
Puerto Rico absent registration or an applicable exemption from
registration requirements. About Oriental Financial Group Oriental
Financial Group Inc. is a financial holding company operating under
U.S. and Puerto Rico banking laws and regulations. It provides
comprehensive financial services to its clients throughout Puerto
Rico and offers third party pension plan administration in the
continental U.S. and Puerto Rico through a wholly owned subsidiary,
Caribbean Pension Consultants, Inc., which is headquartered in Boca
Raton, Florida. The Group's core businesses include a full range of
consumer, commercial and mortgage banking services offered through
23 financial centers in Puerto Rico, as well as financial planning,
trust, insurance, investment brokerage and investment banking
services. More information about the Group may be obtained at
http://www.orientalonline.com/. Forward-Looking Statements This
release may contain forward-looking statements that reflect
management's beliefs and expectations and are subject to risks and
uncertainties inherent to the Group's business, including, without
limitation, the effect of economic and market conditions, the level
and volatility of interest rates, and other considerations.
CONTACTS: In Puerto Rico: Robert P. Schoene 787-720-2638 In New
York City Steven Anreder or Gary Fishman 800-421-1003 DATASOURCE:
Oriental Financial Group Inc. CONTACT: Robert P. Schoene of
Oriental Financial Group, in Puerto Rico, +1-787-720-2638; or in
New York City, Steven Anreder or Gary Fishman, +1-800-421-1003, for
Oriental Financial Web site: http://www.orientalonline.com/
Copyright
OFG Bancorp (NYSE:OFG)
Historical Stock Chart
From Sep 2024 to Oct 2024
OFG Bancorp (NYSE:OFG)
Historical Stock Chart
From Oct 2023 to Oct 2024