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LONDON, ON, July 4, 2013 /CNW/ - Pacific & Western Credit Corp. ("PWC") (TSX:PWC) is pleased to announce that its wholly-owned subsidiary, Pacific & Western Bank of Canada (the "Bank"), has filed a preliminary prospectus in each of the provinces and territories of Canada, other than Quebec, in connection with a reasonable "best efforts" marketed offering of common shares of the Bank ("Common Shares"). The offering (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 PWC. The 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 of the Offering received by the Bank to reduce the amount of the Bank's outstanding subordinated notes which are held by a third party.
PWC plans to use the first $3.0 million in net proceeds of the Offering received by PWC for the purposes of its ongoing working capital requirements. Any net proceeds received by PWC above $3.0 million will be invested by PWC, following closing of the Offering, in additional Common Shares of the Bank at a price per Common Share equal to the offering price per Common Share under the Offering. In turn, the Bank is proposing to use the net proceeds raised from the sale of the additional Common Shares to PWC towards the repayment of the subordinated notes of the Bank held by a third party.
David Taylor, President & CEO of PWC and the Bank, stated that, "I am pleased to announce the filing of the Bank's preliminary prospectus. This is the final step in the key transactions announced on January 28, 2013. 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.
The securities described above have not been registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This press release does not constitute an offer to sell or the solicitation of an offer to buy nor shall there by any sale of the securities in any state in which such offer, solicitation or sale would be unlawful.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
Certain information contained in this news release, including statements relating to the initial public offering and secondary offering of Common Shares of the Bank, statements with respect to the use of proceeds of the Offering, repayment of the debt owed to a third party, the follow-on subscription for Common Shares by PWC and the use of proceeds in respect of same, and any other statements regarding PWC's or the Bank's future expectations, beliefs, goals or prospects constitute forward-looking information within the meaning of applicable securities legislation (collectively, "forward-looking statements"). All statements in this news release that are not statements of historical fact (including statements containing the words "expects", "does not expect", "plans", "anticipates", "does not anticipate", "believes", "intends", "estimates", "projects", "potential", "scheduled", "forecast", "budget" and similar expressions) should be considered forward-looking statements. All such forward-looking statements are subject to important risk factors and uncertainties, many of which are beyond PWC's and/or the Bank's ability to control or predict. A number of important factors could cause actual results or events to differ materially from those indicated or implied by such forward-looking statements, including without limitation: the receipt of applicable regulatory approvals may not be obtained on the terms expected or on the anticipated schedule and the volatility of the marketplace.
Neither PWC nor the Bank assumes any obligation to update the information in this communication, except as otherwise required by law. Additional information identifying risks and uncertainties is contained in PWC's and the Bank's filings with the various provincial securities commissions which are or will be available online at www.sedar.com. Forward-looking statements are provided for the purpose of providing information about the current expectations, beliefs and plans of the management of PWC and the Bank. Readers are cautioned that such statements may not be appropriate for other purposes. Readers are also cautioned not to place undue reliance on these forward-looking statements, that speak only as of the date hereof.
SOURCE Pacific & Western Credit Corp.