OFG Bancorp Announces Redemption of Series A, B and D Preferred Stock

Rhea-AI Summary

OFG Bancorp (NYSE: OFG) has announced the redemption of all outstanding preferred stock series at a price of $25.00 per share. This includes 1,340,000 shares of Series A, 1,380,000 shares of Series B, and 960,000 shares of Series D, with redemption dates set for April 30, 2021, and July 15, 2021. CEO José Rafael Fernández stated that redeeming $92.0 million in preferred stock is part of their capital management strategy, expected to increase net income to shareholders by $6.5 million annually.

Positive

• Redemption of $92.0 million in preferred stock will boost capital structure.
• Annual net income available to shareholders is projected to increase by $6.5 million.

Negative

• None.

OFG Bancorp (NYSE: OFG) today announced the redemption of all three series of currently outstanding preferred stock, each at a redemption price of $25.00 per share.

José Rafael Fernández, Chief Executive Officer, said: “This announcement reflects our continuous and proactive capital management strategy. Redeeming the $92.0 million of preferred stock will enable us to effectively deploy some excess liquidity, improve our capital structure, and increase net income available to shareholders by $6.5 million on an annual basis.”

• 7.125% Noncumulative Monthly Income Preferred Stock, Series A, 1,340,000 shares outstanding, CUSIP 67103X201: The redemption date will be April 30, 2021. The previously announced monthly dividend payment of $0.1484375 per share is payable April 30, 2021 to shareholders of record April 15, 2021.
• 7.0% Noncumulative Monthly Income Preferred Stock, Series B, 1,380,000 shares outstanding, CUSIP 67103X300: The redemption date will be April 30, 2021. The previously announced monthly dividend payment of $0.1458333 per share is payable April 30, 2021 to shareholders of record April 15, 2021.
• 7.125% Noncumulative Perpetual Preferred Stock, Series D, 960,000 shares outstanding, CUSIP 67103X409: The redemption date will be July 15, 2021. The accrued and unpaid quarterly dividend of $0.4453125 per share is payable on the redemption date together with the redemption price.

Holders of record of the Series A, Series B and Series D Preferred Stock will receive official notice of the redemption in accordance with the provisions of the Company’s Certificate of Designation for each series.

American Stock Transfer & Trust Company, LLC is the redemption and paying agent. For more information, registered holders of the securities to be redeemed may contact the redemption and paying agent at 877-248-6417 (toll free) or 718-921-8317 or at 6201 15^th Avenue, Brooklyn, NY 11219. Shareholders owning shares through a broker, bank or other nominee should contact that party for information. Funds for each redemption will be deposited by the Company with the redemption and paying agent on or before the corresponding redemption date.

About OFG Bancorp

Now in its 57^th year in business, OFG Bancorp is a diversified financial holding company that operates under U.S., Puerto Rico and U.S. Virgin Islands banking laws and regulations. Its three principal subsidiaries, Oriental Bank, Oriental Financial Services and Oriental Insurance, provide a wide range of retail and commercial banking, lending and wealth management products, services and technology, primarily in Puerto Rico and U.S. Virgin Islands. Visit us at www.ofgbancorp.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210329005405/en/

FAQ

What is the redemption price for OFG Bancorp's preferred stock?

The redemption price for all series of OFG Bancorp's preferred stock is $25.00 per share.

When will OFG Bancorp redeem its Series A and Series B preferred stock?

OFG Bancorp will redeem its Series A and Series B preferred stock on April 30, 2021.

When is the redemption date for Series D preferred stock of OFG Bancorp?

The redemption date for Series D preferred stock is set for July 15, 2021.

How much will shareholders gain from the redemption of preferred stock?

Shareholders are expected to see an increase in net income of $6.5 million annually from the redemption.