Next Steps in CalFed’s Plan

Here are the next key events in CalFed’s plan to bolster its finances:

* To help meet new federal capital standards effective June 30, CalFed expects to raise about $30 million through a public stock offering of its California Thrift & Loan consumer loan unit. Other, limited asset sales are also likely.

* Even with the above asset sales, CalFed will probably be $25 million to $40 million short of June capital requirements. So an additional equity offering is also likely.

Most analysts believe CalFed will do a “rights offering” of new stock to current shareholders. Such offerings essentially give holders the opportunity to buy more stock later at a discount. If they refuse, they face dilution of their holdings, because the thrift then would attempt to sell stock directly to new investors.

Jerry St. Dennis, CalFed’s chief, says a rights offering isn’t definite. The firm might try to sell preferred stock instead, he says.

* With today’s 1-for-5 reverse stock split, CalFed will have 25 million shares outstanding, of which about 19.5 million belong to the firm’s former bondholders. But the bondholders get their shares in three equal installments: Feb. 1, May 1 and Aug. 1.

So technically, 13 million CalFed shares, or half the total, could be dumped on the market in May and August if bondholders cash in.

However, the rights to the May and August shares now trade in the private market. So bondholders who want to sell their shares can already do so. That may alleviate pressure on the stock when the new shares officially begin trading.

* One other source of stock: As a small bonus, longtime shareholders in December got warrants to buy 2.6 million new CalFed shares at $10.50 each (post-split). The warrants are exercisable only in June, 1994. It will take five warrants to buy one share; the warrants trade on NASDAQ at about $2 each now.