OFG Bancorp (NYSE:OFG)
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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/