BURLINGTON, Mass. — EasCorp FCU said it raised new equity capital with an $18 million offering of preferred paid-in-capital accounts II, considered Tier One capital under generally accepted accounting principles, or GAAP.
The new PIC have no term to maturity, are uninsured, are callable at EasCorp's option and cannot be used as collateral for any borrowings, according to Alan Bernstein, SVP-business development for the $1.4-billion corporate, who noted the new shares will count as equity under GAAP.
Some of the PPIC II was converted from preferred capital accounts, and some represents new capital, Bernstein told Credit Union Journal, declining to quantify how much of the offering is new capital. Eighty EasCorp CUs participated in the offering.
He also declined to say how the new offering will affect the corporate's capital ratio, pointing out that they are still awaiting final word on the exhaustion of capital at U.S. Central FCU, which is not expected until later this month. "We're still waiting for the outcome of the 2008 U.S. Central audit," he said.
Following the completion of the PPIC II offering, EasCorp had $37.7 million in member-contributed paid in capital accounts from 104 member CUs.
