Doral Financial Corp. (DRL) announced the results of its offer to buy up to $100 million of liquidation preference value of its outstanding 4.75% Cumulative Perpetual Convertible Preferred Stock in exchange for Doral common shares. The company said that the offer expired on December 9, 2009.
The company announced that 208,854 shares of its Convertible Preferred Stock were tendered. Overall, $52.2 million liquidation preference of the Convertible Preferred Stock was exchanged and the transaction will result in the issuance of about 4.3 million new shares of Doral common stock.
The company stated that this transaction strengthened capital position by increasing Tier 1 Common Capital to Risk Weighted Assets by 85 bps to 7.30% from 6.45% and Tangible Common Equity to Tangible Assets by 52 bps to 4.58% from 4.06%.
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