PlainsCapital Set For First US Bank IPO In 2 Years
BOSTON (AP) ¿ Plenty of publicly traded banks have issued more stock this year to raise cash and bolster balance sheets damaged in the credit crunch. Now, a Texas bank, PlainsCapital Corp., is seeking to go public to repay government bailout funds in what would be the first initial offering by a U.S. bank in more than two years.
PlainsCapital Corp. said in a regulatory filing Wednesday that it expects to offer 15 million shares of common stock at price range of $14 to $16 apiece. The Dallas-based bank, which also offers mortgage and financial advisory services, said it has been authorized for listing on the New York Stock Exchange under the symbol "PCB."
PlainsCapital, which disclosed initial plans for the IPO in August, said it expects the offering will raise about $141.5 million, after expenses.PlainsCapital intends to use about $92 million from the offering to buy back preferred stock from the U.S. Treasury Department. The stock was issued under the government's Capital Purchase Program, which injected money into troubled banks during the financial crisis. Another $20 million will repay debt owed under a revolving credit line to an affiliate of J.P. Morgan Securities. The rest will support bank operations.
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