San Juan, Puerto Rico-based OFG Bancorp has elected to effect a mandatory conversion of all of its outstanding 8.750% series C noncumulative convertible perpetual preferred stock into common stock.

On Oct. 22, the effective date of the conversion, each series C preferred share will be converted into 86.4225 common shares. Cash will be paid in lieu of fractional common shares. The company currently has 84,000 series C preferred shares outstanding, all of which will be converted to common stock.

The company's right to mandatorily convert the preferred stock into common stock was triggered when the common stock price closed at $17.50 on Aug. 14. The date marked the 20th trading day in the previous 30 consecutive trading days that the common stock closed above $15.04, which is equal to 130% of the applicable conversion price for the series C preferred stock.