Holland & Knight Advises FirstBank Puerto Rico on Sale of $516.7 Million Loan Portfolio

MIAMI – March 3, 2011 – Holland & Knight represented FirstBank Puerto Rico in the sale of a $516.7 million loan portfolio to CPG/GS PR NPL LLC, a joint venture created by Goldman, Sachs & Co. and Caribbean Property Group. With this sale, FirstBank was able to reduce its classified assets and non-performing loans by $410.3 million and $254.3 million, respectively. The deal closed on February 16, 2010.

The purchase price of $275.9 million was funded with a $90 million initial cash contribution , a $138 million acquisition loan provided by FirstBank Puerto Rico, and a $48 million contribution associated with a 35% equity interest in the joint venture to be retained by FirstBank.

FirstBank Puerto Rico is a state-chartered commercial bank with operations in Puerto Rico, the Virgin Islands and Florida.

Holland & Knight partners Roberto Pupo and Alberto Hernandez and senior counsel David Sofge represented FirstBank Puerto Rico in the transaction.