Western Financial Group Announces Perpetual Convertible Preferred Equity Financing (Dec)
HIGH RIVER, Alberta - December 12, 2007. (TSX - WES) Western Financial Group Inc. (the “Company”) announced today that it has retained a syndicate of agents led by CIBC World Markets Inc. to offer a minimum of $5 million of cumulative perpetual convertible first preferred shares, series 4 (the “Preferred Shares”) at a price of $100.00 per Preferred Share. The proceeds from the financing will be used to fund the ongoing broker acquisition program, repay outstanding indebtedness and for general corporate purposes.
The Preferred Shares will pay a cumulative dividend of 6.75% per annum during the period commencing the date of issue and ending June 1, 2013, 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 $6.90 per common share. The
Preferred Shares will be redeemable by the Company at their option only after January 1, 2011. Redemption from January 1, 2011 and prior to January 1, 2013 will be at a redemption price
equal to $100 per share plus all accrued or declared and unpaid dividends, provided that the common shares of the Company are trading at a price in excess of 135% of the conversion price.
After January 1, 2013, the Preferred Shares will be redeemable at the option of the Company at any time at a redemption price equal to $100 per share plus all accrued or declared and unpaid
dividends, If not redeemed, commencing June 1, 2013, 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 June 1, 2013 and reset on each anniversary of such date in an amount equal to 3.5% above the five year Canadian bond rate as quoted ten days before the anniversary date.
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 Western Financial Group are traded on the Toronto Stock Exchange under the symbol “WES”.
These Preferred Shares have not been registered under United States Securities Act of 1933 (the "US Securities Act") or the securities laws of any state and may not be offered or sold in the United States or to US persons (as defined in Regulation S under the US Securities Act) unless an exemption from registration is available.
This press release is not for distribution to any United States news service or otherwise in the United States.
For further information:
Scott Tannas, President and Chief Executive Officer
Western Financial Group
Categories: Archived News - 2007
Most Popular Community Post
Most Popular Blog
August 14, 2019