By Devika Patel
Knoxville, Tenn., Dec. 12 - Western Financial Group Inc. priced a C$5 million offering of cumulative perpetual convertible first preferred shares, according to a company news release.
The preferreds are priced at C$100 each. They will pay a cumulative dividend of 6.75% per year from issuance to June 1, 2013. The dividend will be payable semiannually if declared by the company's board.
Holders will be able to convert the preferreds into common shares at C$6.90 per common share.
The preferreds will be callable at par plus accrued interest beginning on Jan. 1, 2011 if the company's common shares trade above 135% of the conversion price.
After Jan. 1, 2013, the preferreds will be callable at par plus accrued interest at any time.
If the preferred shares are not redeemed by June 1, 2013, they will pay semiannually a cumulative dividend, if declared by the board, at a rate per year equal to the five-year Canadian bond rate plus 350 basis points. The dividend will be recalculated on each anniversary beginning on June 1, 2013.
CIBC World Markets Inc. will lead a syndicate of agents for this offering.
Proceeds will be used to fund the ongoing broker acquisition program, to repay outstanding debt and for general corporate purposes.
Western Financial is a financial services company based in High River, Alta.
| Issuer: | Western Financial Group Inc.
|
| Issue: | Cumulative convertible first preferred shares
|
| Amount: | C$5 million
|
| Maturity: | Perpetual
|
| Price: | C$100
|
| Dividends: | 6.75%
|
| Conversion price: | C$6.90
|
| Call: | If company's shares trade above 135% of C$6.90 after Jan. 1, 2011; or, any time after Jan. 1, 2013, at par plus accrued interest
|
| Warrants: | No
|
| Agents: | CIBC World Markets Inc. (lead)
|
| Pricing date: | Dec. 12
|
| Stock symbol: | Toronto: WES
|
| Stock price: | C$5.80 at close Dec. 12
|
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