Sterling Financial Corp. has filed registration materials with the U.S. Securities and Exchange Commission for a $40 million securities offering.

A Delaware business trust subsidiary, Security Capital Trust I, will issue the cumulative capital securities.

The underwriters will be Dain Bosworth Inc. and Piper Jaffray Inc.

Senior Vice President Heidi Stanley said proceeds from the issue will be used to expand Sterling’s capital base.

The holding company for Sterling Savings Association chose to issue cumulative capital securities, which are similar to preferred shares, because they do not dilute common stock, she said.

Stan Webb, manager of the Spokane Dain Bosworth office, said tax advantages make the issue of such shares through trusts attractive.

He said the shares will probably be sold for $25, with a still undetermined interest rate.

Quick SEC turnaround on the filing could make the issue available as soon as next week, Webb said. , DataTimes