Popular Capital Trust II Pfd Gtd 6.125% (NASDAQ: BPOPM) is a Delaware statutory trust formed by Popular, Inc. to issue cumulative preferred securities. The trust’s sole assets consist of junior subordinated debentures issued by Popular, Inc., which serve as collateral for the preferred securities. Investors in BPOPM receive a fixed annual distribution rate of 6.125% through the initial fixed‐rate period.
These trust preferred securities are guaranteed on a subordinated basis by Popular, Inc., a financial holding company headquartered in San Juan, Puerto Rico. The distributions on the preferred securities are payable quarterly and, after the initial fixed period, reset to a floating rate based on three‐month LIBOR plus a fixed spread, subject to customary adjustments.
Popular Capital Trust II was established in 2006 as part of Popular, Inc.’s broader capital management strategy to support its banking and financial services operations. The formation of the trust allowed Popular, Inc. to raise regulatory capital efficiently while providing investors with a yield-oriented preferred security. The trust remains a passive entity, with its activities limited to holding the debentures and making distributions to preferred security holders.
Popular, Inc., the guarantor of BPOPM, operates retail and commercial banking, mortgage finance, wealth management and insurance services across Puerto Rico, the U.S. mainland, the Caribbean and Latin America. As a component of Popular’s consolidated capital structure, Popular Capital Trust II contributes to the parent company’s Tier 1 capital base, supporting its lending and deposit activities throughout its core markets.
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