Western Financial plans C$15 million to C$30 million offering of perpetual convertible preferreds

By Rebecca Melvin

New York, Aug. 20 - Western Financial Group Inc. said it plans to price a minimum of C$15 million and a maximum of C$30 million of perpetual convertible first preferred shares via a "best efforts" agency offering with a syndicate of agents co-led by TD Securities Inc., CIBC World Markets Inc. and RBC Dominion Securities Inc., according to a news release.

The Regulation S deal will also include underwriting participation from Desjardins Securities Inc., Jennings Capital Inc., GMP Securities LP, Acumen Capital Finance Partners Ltd. and Industrial Alliance Securities Inc.

Proceeds will be used for general corporate purposes and to fund capital requirements for the company's subsidiaries.

The financing is expected to close on Sept. 3.

The preferred shares will be entitled to fixed cumulative preferential cash dividends at a rate of $9 per share, which have a par value of $100 per share, per annum for each year until March 31, 2015.

The preferreds will be convertible at the holder's option at a price of $2.81 per common share.

They will be non-callable for three years until Sept. 30, 2012, and provisionally callable thereafter at a 135% price hurdle. After Sept. 30, 2014, the convertibles will be callable at any time at a redemption price equal to $100 per share plus all accrued or declared and unpaid dividends.

Western Financial Group is a financial services company based in High River, Alta.

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