/Not for distribution to U.S. news wire services or dissemination in the
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
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
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.
For further information:
Investor Relations: Wade MacBain, Director, (800) 244-1509, email@example.com;
Public Relations & Media: Tel Matrundola, Vice-President, (416) 203-0882, firstname.lastname@example.org
Visit our websites at: http://www.pwbank.com and http://www.pwccapital.com