WesCorp Seeks $250 Million Recap
SAN DIMAS, Calif. – WesCorp FCU, the newly chartered United Resources FCU, plans to begin solicitation soon for as much as $250 million in new capital, the corporate said this afternoon.
The recapitalization is part of an 80-page business plan, calling for a scaled-down WesCorp with $4 billion to $5 billion in assets and 5% capital. The newly formed corporate plans to issue a private placement memorandum over the next few weeks for the capital offering. Credit unions will have until August 31 to decide whether to invest in the new corporate credit union.
The new corporate will offer a portfolio of products like payment services, liquidity products including term loans, and short-term investments in compliance with NCUA’s new corporate credit union regulations. United Resources will represent a scaled-down version of WesCorp, the one-time $34 billion corporate, one of five failed corporates. The failure of WesCorp cost 1,025 credit union members all of their $2 billion in capital, a major hurdle to the recapitalization efforts.
“We are very pleased to have received confirmation from NCUA that the business plan is approved and we are clear to move forward with the chartering process,” said Matt Davidson, chairman of the board, United Resources.