By Devika Patel
Knoxville, Tenn., Feb. 5 - Canadian Western Bank said it has arranged a C$135 million private placement of preferred units. It also priced a public offering of units for C$65 million.
The company will sell 5.4 million units of one 7.25% series 3 preferred share and 1.7857 warrants. The warrants are each exercisable at C$14.00 for five years.
The preferreds will yield 7.25% annually, payable quarterly, until April 30, 2014. Thereafter, the dividend rate will reset every five years at a level of 500 basis points over the then five-year government of Canada bond yield.
Holders may convert their shares to series 4 non-cumulative floating-rate preferred shares on April 30, 2014 and on April 30 every five years thereafter.
Canadian Western Bank is based in Edmonton, Alberta.
| Issuer: | Canadian Western Bank
|
| Issue: | Units of one series 3 preferred share and 1.7857 warrants
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| Amount: | C$135 million
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| Units: | 5.4 million
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| Warrants: | 1.7857 warrants per unit
|
| Warrant expiration: | Five years
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| Warrant strike price: | C$14.00
|
| Pricing date: | Feb. 5
|
| Stock symbol: | Toronto: CWB
|
| Stock price: | C$11.22 at close Feb. 4
|
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|
| Preferreds
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| Dividends: | 7.25%
|
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