Vectra Banking Corp. has announced plans to offer $17.5 million of cumulative capital securities through VBC Capital 1, a business trust subsidiary.
The offering will be handled by Dain Bosworth Inc. and Howe Barnes Investments Inc.
About $8.3 million of the net proceeds will be used to redeem all the company's 95 cent Series A cumulative preferred stock on May 23. The redemption price will be $10.30 per share, plus 15 cents in accrued and unpaid interest. No dividends will be paid after May 23.
The $581 million-asset company, the second-largest independent banking company in Colorado, also declared a 3-for-2 stock split, to be issued May 30 to shareholders of record May 15.
Each shareholder will get an additional 50 shares of common stock for every 100 currently owned. Cash payments will be made for fractional shares. The company will then have 4.8 million shares outstanding.