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EDMONTON, Dec. 11, 2012 /CNW/ - Canadian Western Bank (TSX: CWB) ("CWB" or the
"Bank") today announced its intent to issue $250 million of subordinated
debentures (the "Debentures") via a private placement to accredited investors.
The issue was placed though a syndicate of dealers with RBC Capital Markets
and BMO Capital Markets acting as joint bookrunners.
The Debentures will bear interest at a fixed rate of 3.463% per annum, payable
in equal semi-annual payments in arrears on June 17 and December 17 of each
year, commencing June 17, 2013 until December 17, 2019. Thereafter, floating
to maturity at 3-month CDOR plus 1.60%, payable quarterly.
The Debentures will be redeemable by the Bank at a redemption price equal to
par, plus accrued and unpaid interest, any time on or after December 17, 2019,
with the prior written consent of the Superintendent of Financial Institutions
Canada, on not less than 30 nor more than 60 days prior notice.
The issue is scheduled to settle on December 17, 2012. The purpose of the
issue is to support current and future asset growth, and to capitalize on
transition allowances permitted for Canadian banks under the Basel III capital
framework, effective January 1, 2013. Proceeds of the issue will be added to
the Bank's general funds.
The securities offered have not been registered under the U.S. Securities Act
of 1933, as amended, and may not be offered or sold in the United States
absent registration or an applicable exemption from the registration
requirements. This news release shall not constitute an offer to sell or the
solicitation of an offer to buy, nor shall there be any sale of the securities
in any State in which such offer, solicitation or sale would be unlawful.
About Canadian Western Bank Group
Canadian Western Bank offers a full range of business and personal banking
services across the four western provinces and is the largest Canadian owned
bank headquartered in Western Canada. The Bank, along with its operating
affiliates, National Leasing Group Inc., Canadian Western Trust Company,
Valiant Trust Company, Canadian Direct Insurance Incorporated, Adroit
Investment Management Ltd. and Canadian Western Financial Ltd., collectively
offer a diversified range of financial services across Canada and are together
known as Canadian Western Bank Group. The common shares of Canadian Western
Bank are listed on the Toronto Stock Exchange under the trading symbol "CWB."
Refer to www.cwbankgroup.com for additional information.
Tracey Ball, FCA, ICD.D Executive Vice President & CFO Canadian Western Bank
Phone: (780) 423-8888
Kirby Hill, CFA Director, Strategy and Communications Canadian Western Bank
Phone: (780) 441-3770 E-mail:firstname.lastname@example.org
SOURCE: Canadian Western Bank
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CO: Canadian Western Bank
-0- Dec/12/2012 01:34 GMT
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