Banco Popular Completes the Sale of $540 million (Book Value) of
Non-Performing Loans and Other Real Estate Owned
SAN JUAN, Puerto Rico -- March 25, 2013
Popular, Inc. (Nasdaq:BPOP) (“Popular”) announced today that Banco Popular de
Puerto Rico (“Banco Popular”), its principal banking subsidiary, completed the
previously announced sale of a portfolio of non-performing commercial and
construction loans, and commercial and single-family real estate owned, with a
combined unpaid principal balance on loans and appraised value of other real
estate owned of approximately $995 million and book value of approximately
$540 million to an entity majority owned by a joint venture between Caribbean
Property Group LLC and certain affiliates of Perella Weinberg Partners’ Asset
Based Value Strategy. As part of the transaction, Banco Popular will acquire a
24.9% equity interest in the purchasing entity.
The purchase price for the assets was approximately $338 million, or 34% of
the sum of the unpaid principal balance of the loans and the appraised value
of the other real estate owned as of the agreed cut-off date, adjusted for
certain collections and advances.
As previously announced, the transaction will significantly reduce Popular’s
non-performing assets and credit-related expenses. The transaction is expected
to result in an after-tax loss of approximately $179 million, which will be
recognized in the first quarter of 2013.
Carlos J. Vazquez, 787-756-3982
Chief Financial Officer, Executive Vice President
Teruca Rullán, 787-281-5170 or 917-679-3596/mobile
Senior Vice President, Corporate Communications
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