Oriental Prices $50M Stock Offering for BBVA Branch Deal

October 26, 2012, 12:40 p.m. EDT 1 Min Read

M&A

Puerto Rican Deal Provides Rare Chance for a Bank Makeover

The prospect of better spreads at Oriental Financial Group trumps the hit to book value under its $500 million agreement to buy BBVA's unit in Puerto Rico.

By Matthew Monks

June 28

Oriental Financial Group (OFG) has priced its public offering that will it raise capital to buy the Puerto Rican operations of Banco Bilbao Vizcaya Argentaria.

The $6.3 billion-asset company is selling roughly 4.4 million shares of common stock at $11.10 each, Oriental said Thursday. The San Juan, Puerto Rico, company also has granted its underwriters a 30-day option to buy up to an additional 439,000 shares of common stock.

Net proceeds will be roughly $50.5 million if the underwriters exercise their option to purchase all of added shares. Oriental had said in September that it would raise up to $36 million through a common stock offering.

BBVA agreed in June to sell its banking operations in Puerto Rico to Oriental for $500 million in cash.

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