Pacific & Western Credit Corp. (TSX:PWC) said Thursday that its subsidiary, Pacific & Western Bank of Canada, has filed a preliminary prospectus for an offering of common shares of the bank.
The offering is expected to consist of an initial public offering by the bank of common shares, as well as a secondary offering of common shares held by London, Ont.-based PWC.
Terms and conditions of the offering will be determined by negotiation between PWC, the bank and a syndicate of agents lead by RBC Dominion Securities Inc.
The bank plans to use the net proceeds to reduce the amount of the bank’s outstanding subordinated notes which are held by a third party.
PWC plans to use the first $3 million in net proceeds received by PWC for its ongoing working capital requirements. Any net proceeds received by PWC above $3 million will be invested by in additional common shares of the bank.
“This is the final step in the key transactions announced on January 28,” says David Taylor, president & CEO of PWC and the bank.
“We look forward to the bank being able to access capital directly from the markets to further the bank’s growth initiatives. This will also allow PWC to diversify its income, and further consider its options including the acquisition and management of income producing properties.”
The bank, a Canadian Schedule I chartered bank, raises deposits through various deposit brokers located across Canada and invests these deposits in loans, leases, commercial mortgages, residential development mortgages and debt of corporations.