Popular, Inc. (Form: 8-K)

0001299933-11-002910.txt : 20110930 0001299933-11-002910.hdr.sgml : 20110930 20110930160959 ACCESSION NUMBER: 0001299933-11-002910 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20110929 ITEM INFORMATION: Other Events ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20110930 DATE AS OF CHANGE: 20110930 FILER: COMPANY DATA: COMPANY CONFORMED NAME: POPULAR INC CENTRAL INDEX KEY: 0000763901 STANDARD INDUSTRIAL CLASSIFICATION: STATE COMMERCIAL BANKS [6022] IRS NUMBER: 660667416 FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-34084 FILM NUMBER: 111117030 BUSINESS ADDRESS: STREET 1: 209 MUNOZ RIVERA AVE STREET 2: POPULAR CENTER BUILDING CITY: HATO REY STATE: PR ZIP: 00918 BUSINESS PHONE: 7877659800 MAIL ADDRESS: STREET 1: P.O. BOX 362708 CITY: SAN JUAN STATE: PR ZIP: 00936-2708 FORMER COMPANY: FORMER CONFORMED NAME: BANPONCE CORP DATE OF NAME CHANGE: 19920703 8-K 1 htm_43083.htm LIVE FILING Popular, Inc. (Form: 8-K)

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934


Date of Report (Date of Earliest Event Reported):		September 29, 2011

Popular, Inc.
__________________________________________
(Exact name of registrant as specified in its charter)


Puerto Rico	001-34084	66-0667416
_____________________ (State or other jurisdiction	_____________ (Commission	______________ (I.R.S. Employer
of incorporation)	File Number)	Identification No.)

209 Munoz Rivera Ave., Popular Center Building , Hato Rey , Puerto Rico		00918
_________________________________ (Address of principal executive offices)		___________ (Zip Code)


Registrant’s telephone number, including area code:		787-765-9800

Not Applicable
______________________________________________
Former name or former address, if changed since last report

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

[  ]  Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
[  ]  Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
[  ]  Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
[  ]  Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

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Item 8.01 Other Events.

On September 29, 2011, Popular, Inc. announced that Banco Popular de Puerto Rico ("Banco Popular"), its principal banking subsidiary, completed the sale of a portfolio of construction and commercial real estate loans with an unpaid principal balance and net book value of approximately $358 million and approximately $148 million, respectively. Popular, Inc. has issued a press release in connection with the sale of the portfolio, a copy of which is attached hereto as Exhibit 99.1.

Exhibit 99.1 shall not be deemed "filed" for purposes of the Securities Exchange Act of 1934, as amended, nor shall it be incorporated by reference into any of the Corporation’s filings under the Securities Act of 1933, as amended, unless otherwise expressly stated in such filing.

Item 9.01 Financial Statements and Exhibits.

The following exhibit shall not be deemed to be "filed" for purposes of the Securities Exchange Act of 1934, as amended.

Exhibit 99.1 Press release dated September 29, 2011

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.


	Popular, Inc.

September 30, 2011	By:	Ileana Gonzalez

		Name: Ileana Gonzalez
		Title: Senior Vice President and Corporate Comptroller

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Exhibit Index


Exhibit No.		Description

99.1		Press release dated 9-29-2011

EX-99.1 2 exhibit1.htm EX-99.1 EX-99.1

Exhibit 99.1

For Immediate Release:

Banco Popular Completes Sale of Construction and Commercial Real Estate Loans

San Juan, Puerto Rico, September 29, 2011 – Popular, Inc. (Nasdaq: BPOP) announced today that Banco Popular de Puerto Rico, its principal banking subsidiary, completed the sale of a portfolio of construction and commercial real estate loans with an unpaid principal balance and net book value of approximately $358 million and approximately $148 million, respectively. The purchaser is a newly created joint venture (the “Joint Venture”), which is majority owned by a limited liability company to be created by Goldman Sachs & Co. , Caribbean Property Group LLC and East Rock Capital LLC.

The loans were sold at a price essentially equal to their book value and Banco Popular will not recognize any significant gain or loss on the sale.

The following is a summary of the principal terms of the transaction:

• The purchase price for the transaction is equal to 45.3% of the unpaid principal balance of the loans as of March 31, 2011 (approximately $381 million), adjusted for certain collections and advances made after such date.

• As consideration for the sale of the loans, Banco Popular will receive approximately $48 million in cash, a note for approximately $86 million as seller financing and a 24.9% equity interest in the new Joint Venture.

• Of the $148 million in book value of loans sold, approximately $91 million, or 62%, are construction loans and approximately $57 million, or 38%, are commercial real-estate loans.

• Approximately 97% of the loans sold were classified as non-performing loans.

• Banco Popular will extend a $68.5 million advance facility to the Joint Venture to cover unfunded commitments and other costs to complete the construction projects and a $20 million working capital line of credit to fund certain expenses of the Joint Venture.

• The parties have agreed that no distributions may be made by the Joint Venture to its equity members until all the credit facilities have been paid in full and all commitments to lend terminated. In addition, any distributions by the Joint Venture to its equity members, including Banco Popular, will be made on a pro rata basis according to their proportionate interest in the entity.

• The Joint Venture will engage CPG Island Servicing LLC, an affiliate of Caribbean Property Group, as servicer of the purchased loans. At the same time, the servicer will enter into a subservicing agreement with Archon Group LP, an affiliate of Goldman Sachs, under which it will provide certain subservicing functions with respect to the purchased loans.

Richard Carrión, Chairman and CEO of Popular, Inc., stated: “This transaction is an important step; one of several initiatives the Corporation is pursuing to continue to derisk its balance sheet.”

Founded in 1893, Popular, Inc. is the leading banking institution by both assets and deposits in Puerto Rico and ranks 36th by assets among U.S. banks. In the United States, Popular has established a community-banking franchise providing a broad range of financial services and products with branches in New York, New Jersey, Illinois, Florida and California.

Contact:

Investor Relations:

Jorge A. Junquera

Chief Financial Officer

Senior Executive Vice President

787-754-1685

Media Relations:

Teruca Rullán

Senior Vice President

Corporate Communications

787-281-5170 or 917-679-3596/mobile