It remains to be seen what impact, if any, the 230 credit unions served by LPL Financial Corp. will feel as the company recently filed with the SEC for an initial public stock offering.
On June 4, LPL Financial, the parent company of LPL Investment Holdings Inc. filed a Form S-1 with the SEC with an offering that will consist of primary shares to be sold by LPL and secondary shares to be sold by some of its existing minority stockholders. In a June 4 statement, the company said it intends to use net proceeds from the proposed public offering for repaying indebtedness, which totaled $1.4 billion as of March 31.
Meanwhile, LPL did not offer a comment on the impact of the initial public stock offering on its credit union clients.
"With the filing of its S-1 Registration Statement, LPL Financial is in a quiet period. Accordingly, we have no comment beyond our public filings," Michael Herley, an LPL spokesman, wrote Credit Union Times in a June 3 statement.
Under LPL's certificate of corporation, the company said it has the authority to issue 600 million shares of capital stock valued at $1 per share, according to SEC filings. As of June 1, it had 94,241,604 shares of common stock outstanding, held by 77 holders, including 7,423,973 shares of restricted common stock held by 1,070 advisors and 6,408 restricted shares held by three non-executive directors.
