First BanCorp in San Juan, Puerto Rico, had cut the size of a planned common stock offering after securing a concession from the Treasury Department.

The $16.7 billion-asset company said in a Thursday filing with the Securities and Exchange Commission that it plans to sell $402.5 million in common stock, compared with its original plan to sell $500 million. Net proceeds are expected to total $350 million, the filing said.

The move followed a decision by the Treasury to lower the size of a required common equity raise to $350 million from $500 million. The offering is a prerequisite for the Treasury converting First BanCorp preferred stock it obtained from the Troubled Asset Relief Program into common stock.

First BanCorp has deferred its past five quarterly dividends on preferred stock issued under the Tarp program.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.