Specialty insurer Kingsway Financial Services Inc. today announced that it has filed a preliminary prospectus for a proposed public offering of preferred units of an investment trust.

Kingsway says it expects to use the net proceeds from a note to be issued by a subsidiary in connection with this offering to provide additional capital to its operating subsidiaries and for general corporate purposes, including the repayment of all or a portion of its revolving credit facility.

The trust will only be qualified with securities regulatory authorities in Canada and will be sold through Scotia Capital Inc. and an underwriting syndicate to be formed by it.

Kingsway is the largest truck insurer in North America and the sixth largest non-standard automobile insurer in North America. Kingsway’s primary business is trucking insurance and the insuring of automobile risks for drivers who do not meet the criteria for coverage by standard automobile insurers.