First BanCorp (FBP) in San Juan, Puerto Rico, has enhanced and extended an offer to convert preferred shares into common stock.
The $13 billion-asset company on Tuesday increased the value of a pending exchange offer by 10%, to $22 a share. First BanCorp also extended the offer, which had been set to expire Monday, until April 9.
The offer is intended to strengthen First BanCorp's capital, according to a prospectus it filed in February with the Securities and Exchange Commission.
Under the terms of the revised offer, holders of each of five classes of the company's preferred stock will receive 3.57 shares of common stock for each preferred share they tender, up from 3.24 shares in the original offer. The offer still requires the approval of two-thirds of each of the five classes of preferred stock.
First BanCorp is under a June 2010 order from the Federal Reserve that requires it to take steps to strengthen its balance sheet, which was burdened by nonperforming loans when the financial crisis hit.