SOURCE: Doral Financial Corporation

November 17, 2009 19:16 ET

Doral Updates Exchange Offer Registration Statement for Third Quarter Financial Information

Extends Convertible Preferred Exchange Offer

SAN JUAN, PR--(Marketwire - November 17, 2009) - Doral Financial Corporation (NYSE: DRL) ("Doral" or the "Company"), the holding company of Doral Bank, today announced it has extended the expiration date for its offer to acquire up to $100 million of liquidation preference value of its outstanding 4.750% Cumulative Perpetual Convertible Preferred Stock ("Convertible Preferred Stock") in exchange for shares of Doral common stock until 11:59 p.m. on December 9, 2009, unless the Company further extends the offer or terminates it prior to such date.

The Company's Registration Statement on Form S-4 relating to the exchange offer has been revised to include financial information as of and for the nine months ended September 30, 2009 and to reflect revisions to the proposed amendments to the certificate of designation of the Convertible Preferred Stock.

As of 5:00 p.m. on November 16, 2009, none of the Convertible Preferred Stock had been tendered in connection with the exchange offer. Except as otherwise stated in this release, all of the terms and conditions of the offer are unchanged.

UBS Investment Bank is acting as the dealer manager and MacKenzie Partners is acting as exchange agent and information agent for the exchange offer. For further information please contact UBS Liability Management Group at (888) 719-4210 or (203) 719-4210 or MacKenzie Partners at (800) 322-2885 (toll-free), (212) 929-5500 (collect), or email at

Important Additional Information about the Convertible Preferred Stock Exchange Offer

This press release is provided for informational purposes only and is neither an offer to exchange nor a solicitation of an offer to sell Doral common or preferred stock. The offer to exchange Doral's Convertible Preferred stock is only being made pursuant to the Registration Statement on Form S-4, the letter of transmittal and related offer documents filed with the SEC. Holders of the Company's Convertible Preferred stock must make their own decision whether to tender shares in the related exchange offer, and, if so, the liquidation amount of preferred stock to tender. Neither Doral, the information agent, the exchange agent nor any other person is making any recommendation as to whether or not holders of the Company's preferred stock should tender their shares of preferred stock for exchange in the exchange offer.

Investors and security holders are urged to read the letter of transmittal and other offer documents and any amendments or supplements thereto and any other documents relating to the exchange offer that are filed with the SEC carefully and in their entirety because they contain important information. Investors and security holders can obtain free copies of any such documents filed with the SEC by Doral at and through the web site maintained by the SEC at Free copies of any such documents can also be obtained by directing a request to Doral's information agent, MacKenzie Partners, Inc at (800) 322-2885.


Statements included herein may constitute forward-looking statements. These forward-looking statements may relate to the Company's financial condition, results of operations, plans, objectives, future performance and business, including, but not limited to, statements with respect to the adequacy of the allowance for loan and lease losses, market risk and the impact of interest rate changes, capital markets conditions, capital adequacy and liquidity, and the effect of legal proceedings and new accounting standards on the Company's financial condition and results of operations. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts, and are generally identified by the use of words or phrases such as "would be," "will allow," "intends to," "will likely result," "are expected to," "will continue," "is anticipated," "estimate," "project," "believe," "expect," "may" or similar expressions.

Doral Financial cautions readers not to place undue reliance on any of these forward-looking statements since they speak only as of the date made and represent Doral Financial's expectations of future conditions or results and are not guarantees of future performance. The Company does not undertake and specifically disclaims any obligations to update any forward-looking statements to reflect occurrences or unanticipated events or circumstances after the date of those statements.

Forward-looking statements are, by their nature, subject to risks and uncertainties. While there is no assurance that any list of risks and uncertainties or risk factors is complete, below are certain important factors that could cause actual results to differ materially from those contained in any forward-looking statement:

--  the continued recessionary conditions of the Puerto Rico and the
    United States economies and the continued weakness in the performance of
    the United States capital markets leading to, among other things, (i) a
    deterioration in the credit quality of our loans and other assets, (ii)
    decreased demand for our products and services and lower revenue and
    earnings, (iii) reduction in our interest margins, and (iv) decreased
    availability and increased pricing of our funding sources, including
    brokered certificates of deposit;
--  the strength or weakness of the real estate markets and of the
    consumer and commercial credit sectors and its impact in the credit quality
    of our loans and other assets which may lead to, among other things, an
    increase in our non-performing loans, charge-offs and loan loss provisions;
--  a decline in the market value and estimated cash flows of our mortgage-
    backed securities and other assets may result in the recognition of other-
    than-temporary impairment of such assets under generally accepted
    accounting principles in the United States of America ("GAAP");
--  our ability to derive sufficient income to realize the benefit of the
    deferred tax assets;
--  uncertainty about the legislative and other measures adopted by the
    Puerto Rico government in response to its fiscal situation and the impact
    of such measures on several sectors of the Puerto Rico economy;
--  uncertainty about the effectiveness of the various actions undertaken
    to stimulate the United States economy and stabilize the United States
    financial markets, and the impact of such actions on our business,
    financial condition and results of operations;
--  changes in interest rates, which may result from changes in the fiscal
    and monetary policy of the federal government, and the potential impact of
    such changes in interest rates on our net interest income and the value of
    our loans and investments;
--  the commercial soundness of our various counterparties of financing
    and other securities transactions, which could lead to possible losses when
    the collateral held by us to secure the obligations of the counterparty is
    not sufficient or to possible delays or losses in recovering any excess
    collateral belonging to us held by the counterparty;
--  our ability to collect payment of a receivable from Lehman Brothers,
    Inc. ("LBI"), which results from the excess of the value of securities
    owned by Doral Financial that were held by LBI above the amounts owed by
    Doral Financial under certain terminated repurchase agreements and forward
--  higher credit losses because of federal or state legislation or
    regulatory action that either (i) reduces the amount that our borrowers are
    required to pay us, or (ii) limits our ability to foreclose on properties
    or collateral or makes foreclosures less economically feasible;
--  developments in the regulatory and legal environment for financial
    services companies in Puerto Rico and the United States as a result of,
    among other things, recent legislative and regulatory proposals made by the
    federal government;
--  changes in our accounting policies or in accounting standards, and
    changes in how accounting standards are interpreted or applied;
--  general competitive factors and industry consolidation;
--  potential adverse outcome in the legal or regulatory actions or
    proceedings described in "Legal matters" in the Company's Registration
    Statement on Form S-4 relating to the exchange offer, as updated from time
    to time in the Company's subsequent filings with the SEC; and
--  the other risks and uncertainties detailed in "Risk factors" in the
    Company's Registration Statement on Form S-4 relating to the exchange
    offer, as updated from time to time in the Company's future filings with
    the SEC.

Contact Information

  • Contacts:
    Investor Relations:
    Christopher Poulton
    EVP & Chief Business Development Officer
    Email Contact

    Lucienne Gigante
    VP Public Relations
    Email Contact