Financing Capabilities

In Popular Securities we lead clients through the right path. As an investment bank, we raise capital for private, government and not-for-profit entities through the underwriting of bonds and equity. We also provide clients with financial advisory.

-Public Finance

Popular Securities assists government entities in accessing capital by issuing municipal bonds or notes. Municipal bonds and notes are securities issued by state and local governments to finance their capital projects or cash flow needs. The major advantage of municipal securities is their tax-exempt status. Puerto Rico is one of the few issuers that enjoy triple tax-exempt status - at the federal, state and local levels. There are two types of municipal bonds: General Obligation bonds (GOs), which are backed by the taxing power of the issuing government; and Revenue bonds, which are backed by revenues generated by a particular project.

Over the years, Popular Securities has been one of the leading investment banks for the Commonwealth of Puerto Rico. In order to strengthen our service offerings, Popular Securities has established a strategic alliance with Morgan Stanley. With its presence in 28 countries and over $452 billion assets under management, Morgan Stanley in one of the preeminent investment banks worldwide. Furthermore, Morgan Stanley is one of the leading broker-dealers in the United States municipal market.

-AFICA Financings

A mechanism frequently used by issuers to access the Puerto Rico capital market is the Puerto Rico Industrial, Tourist, Medical, Educational, and Environmental Control Facilities Financing Authority (AFICA), an instrumentality of the Government of Puerto Rico created to provide a new source of financing for capital investment in Puerto Rico. An issuer may seek the endorsement of AFICA in order to issue tax-exempt bonds. Popular Securities is one of the most active investment banks in providing its clients access to the local debt market through AFICA. The following are some of the AFICA Financing projects that the Popular Securities team has lead managed or co-lead managed:

-Corporate Finance and Financial Advisory

In addition to underwriting tax-exempt securities, Popular Securities has underwritten taxable securities for several local corporations. Furthermore, Popular Securities' Investment Banking team is active in the field of financial advisory, merger and acquisition advisory and corporate finance.

• Acted as Senior Manager for the $ 100,000,000 Conservation Trust Fund Secured Notes (April 2002 & March 2001).
• Acted as Placement Agent for the $100,000,000 Doral Financial Corporation Senior Notes (April 2002 & March 2001).
• Acted as Co-Manager of the $60,000,000 R&G Financial Corporation preferred stock issue (February 2002).
• Acted as Co-Manager of the $80,000,000 First BanCorp preferred stock issue (January 2002).
• Acted as Co-Senior Manager of the $1,150,000,000 Popular North America, Inc. Medium Term Notes (October 2001).
• Acted as Co-Manager of the $90,000,000 First BanCorp preferred stock issue (June 2001).
• Acted as Co-Manager of the $75,000,000 First BanCorp preferred stock issue (October 2000).
• Acted as Joint Lead Manager of the $50,000,000 Doral Financial Corporation preferred stock issue (August 2000).
• Acted as Co-Senior Manager in the $1,500,000,000 Popular, Inc. and Popular North America, Inc. Medium Term Notes (August 1999).
• Issued Fairness opinion to Doral Financial Corporation on acquisition of Sana Investment Mortgage Bankers, Inc. (July 1999).
• Acted as sole Puerto Rico based underwriter for the $1,000,000,000 Puerto Rico Telephone Company senior notes (May 1999).
• Acted as Co-Underwriter for the $90,000,000 First BanCorp preferred stock (April 1999).
• Acted as Joint Lead Manager of the $74,750,000 Doral Financial Corporation preferred stock issue (February 1999).
• Acted as Co-Underwriter of the $155,875,000 Banco Santander de Puerto Rico common stock issue (November 1998).
• Acted as Financial Advisor to Hilton International Co. on the purchase of the Caribe Hilton Hotel (November 1998).
  

NOT FDIC INSURED - MAY LOSE VALUE
NOT BANK GUARANTEED