Western Financial Group Announces Completion of Equity Financing
Western Financial Group Inc. (the "Company") announced today that it has completed its previously announced equity financing by way of private placement (the "Private Placement") and as a result has issued 250,000 first preferred shares, series three (the "Preferred Shares") for gross proceeds of $25 million. Net proceeds from the financing will be used to repay indebtedness and for general corporate purposes.
The Preferred Shares were priced at $100.00 per share and will pay a dividend of 6.75% per annum, payable semi-annually if, as and when declared by the Board of Directors. The Preferred Shares will be convertible into the Company's common shares at any time at the holder's option at a price of $7.25 per common share (the "Conversion Price"). The Preferred Shares will be redeemable by the Company at its option only on or after August 1, 2010. Redemption from August 1, 2010 and prior to August 1, 2012 will be at a redemption price equal to par plus accrued and unpaid interest, provided that the volume weighted average trading price of the Company's common shares for at least 20 trading days in any consecutive 30 day period ending not more than five trading days prior to the date on which a notice of redemption is given exceeds 135% of the Conversion Price. On or after August 1, 2012, the Preferred Shares will be redeemable at the option of the Company at any time at a redemption price equal to par plus accrued and unpaid interest. If not redeemed, commencing August 1, 2012, the Preferred Shares will pay semiannually a cumulative dividend if, as and when declared by the Board of Directors, at a rate per annum calculated as at December 1, 2012 and reset on each anniversary of such date (the "Anniversary Date") in an amount equal to 3.5% above the five year Government of Canada bond rate as quoted 10 business days before the Anniversary Date.
CIBC World Markets Inc., Desjardins Securities Inc., Jennings Capital Inc. and Acumen Capital Finance Partners Limited acted as the Company's agents in connection with the Private Placement.
Western Financial Group is a leader in providing insurance, financial services and banking services in over 80 communities, to more than 400,000 individuals and businesses in Western Canada through its WFG Agency Network locations, its affiliated insurance brokers, Western Life Assurance Company and Bank West.
The common shares of the Corporation are traded on the Toronto Stock Exchange under the symbol "WES".
For further information:
Arlene Beggs, Assistant to the President
Western Financial Group
Categories: Archived News - 2007
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