MEDFORD, Ore., Dec. 7, 2009 (GLOBE NEWSWIRE) -- PremierWest Bancorp (Nasdaq:PRWT), parent company of PremierWest Bank, announced that a record date of December 15, 2009 has been set for PremierWest's previously announced proposed rights offering. On November 18, 2009, PremierWest filed a registration statement on Form S-1 with the Securities and Exchange Commission with respect to a proposed offering of subscription rights to purchase its common stock. Upon commencement of the proposed rights offering, PremierWest plans to distribute non-transferable subscription rights to purchase newly issued shares of PremierWest common stock to each holder of its common stock as of the close of business on December 15, 2009. The number of subscription rights to be distributed and the subscription price per share will be determined on a date closer to the date of effectiveness of the registration statement.
All shares in the offering would be sold at the same price. The gross proceeds from the offering are expected to be $36 million. Shareholders who exercise all of their basic subscription rights would also be able to subscribe for a pro rata portion of the shares not subscribed for by other shareholders. D.A. Davidson & Co. is acting as financial adviser to PremierWest. PremierWest intends to use the proceeds of the common stock offering to improve its regulatory capital position, to invest in PremierWest Bank to improve its regulatory capital position and to retain the remainder of any proceeds at PremierWest for general corporate purposes.
A registration statement relating to these securities has been filed with the Securities and Exchange Commission but has not yet become effective. These securities may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective. The rights offering will be made only by means of a prospectus to be distributed as soon as possible after the registration statement becomes effective. This press release shall not constitute an offer to sell or a solicitation of an offer to buy nor shall there be any sales of these securities in any state in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such state. Copies of a prospectus, when available, with respect to this offering may be obtained from PremierWest Bancorp, Attn: Michael D. Fowler, Executive Vice President and Chief Financial Officer, P.O. Box 40, Medford, OR 97501.
ABOUT PREMIERWEST BANCORP
PremierWest Bancorp (Nasdaq:PRWT) is a financial services holding company headquartered in Medford, Oregon, and operates primarily through its subsidiary PremierWest Bank. PremierWest Bank offers expanded banking-related services through two subsidiaries, Premier Finance Company and PremierWest Investment Services, Inc.
This press release includes forward-looking statements within the meaning of the "Safe-Harbor" provisions of the Private Securities Litigation Reform Act of 1995, which management believes are a benefit to shareholders. These statements are necessarily subject to risk and uncertainty and actual results could differ materially due to various risk factors, including those set forth from time to time in our filings with the SEC. You should not place undue reliance on forward-looking statements and we undertake no obligation to update any such statements. In this press release we make forward-looking statements relating to our capital raising activities, our proposed rights offering and offering to standby purchasers and the amount of capital we intend to raise. Specific risks that could cause results to differ from the forward-looking statements are set forth in our filings with the SEC and include, without limitation, negative reaction to the offering, unfavorable pricing of the offering, limited shareholder interest in the offering, lack of standby purchasers, results of shareholder voting on an amendment to our articles of incorporation and deterioration in the economy or our loan portfolio that could alter our intended use of proceeds.