Rac Financial Group Inc. announced that it will make a public offering of approximately two million presplit common shares of stock early next year.
The offering would be worth about $110 million, said Luke Smith, an analyst with Chesapeake Securities in Towson, Md. Rac currently has 14.3 million shares outstanding.
Proceeds will be directed to supporting increased credit facilities and general corporate purposes.
The offering will include 400,000 secondary shares offered by nonmanagement shareholders, with proceeds to go to the shareholders. No senior officers plan to sell shares in the offering, Rac said.
Rac has also boosted its warehouse credit line by $400 million and its residential credit line by $175 million this month, in anticipation of expanding loan volume.
Former chairman Ron Makoff, who gave up that job in October, has also resigned from the company's board of directors and left his potion as Rac's chief legal officer. He intends to pursue other interests, the company said.