EDMONTON, AB, April 15,
2024 /CNW/ - Canadian Western Bank ("CWB") (TSX:
CWB) today announced that after having taken into account all
election notices received by the April 15,
2024 deadline for conversion of its currently outstanding
5,000,000 non-cumulative 5-year rate reset First Preferred Shares
Series 5 (the "Series 5 Preferred Shares") (TSX: CWB.PR.B) into
non-cumulative floating rate First Preferred Shares Series 6 of CWB
(the "Series 6 Preferred Shares"), no Series 5 Preferred Shares
will be converted into Series 6 Preferred Shares. There were
74,617 Series 5 Preferred Shares elected for conversion, which
is less than the minimum 500,000 shares required to give effect to
conversion into Series 6 Preferred Shares.
As announced by CWB on April 1,
2024, after April 30, 2024,
holders of Series 5 Preferred Shares will be entitled to receive
fixed rate non-cumulative preferential cash dividends on a
quarterly basis, as and when declared by the Board of Directors of
CWB and subject to the provisions of the Bank Act
(Canada). The dividend rate for
the five-year period commencing on May 1,
2024, and ending on April 30,
2029, will be 6.371% per annum or $0.3981875 per share per quarter, being equal to
the sum of the five-year Government of Canada bond yield as at April 1, 2024, plus 2.76%, as determined in
accordance with the terms of the Series 5 Preferred Shares. The
quarterly cash dividend was previously $0.2688125 per Series 5 Preferred Share up
to and including the dividend to be paid on April 30, 2024 to shareholders of record on
April 23, 2024.
Subject to certain conditions described in the prospectus
supplement dated February 3, 2014
relating to the issuance of the Series 5 Preferred Shares, CWB may
redeem the Series 5 Preferred Shares, in whole or in part, on
April 30, 2029 and on April 30 every five years thereafter.
CWB today also announced that after having taken into account
all election notices received by the April
15, 2024 deadline for conversion of its currently
outstanding 5,000,000 non-cumulative 5-year rate reset First
Preferred Shares Series 9 (Non-Viability Contingent Capital (NVCC))
(the "Series 9 Preferred Shares") (TSX: CWB.PR.D) into
non-cumulative floating rate First Preferred Shares Series 10
(Non-Viability Contingent Capital (NVCC)) of CWB (the "Series 10
Preferred Shares"), no Series 9 Preferred Shares will be converted
into Series 10 Preferred Shares. There were 24,200 Series 9
Preferred Shares elected for conversion, which is less than the
minimum 500,000 shares required to give effect to conversion into
Series 10 Preferred Shares.
As announced by CWB on April 1,
2024, after April 30, 2024,
holders of Series 9 Preferred Shares will be entitled to receive
fixed rate non-cumulative preferential cash dividends on a
quarterly basis, as and when declared by the Board of Directors of
CWB and subject to the provisions of the Bank Act
(Canada). The dividend rate for
the five-year period commencing on May 1,
2024, and ending on April 30,
2029, will be 7.651% per annum or $0.4781875 per share per quarter, being equal to
the sum of the five-year Government of Canada bond yield as at April 1, 2024, plus 4.04%, as determined in
accordance with the terms of the Series 9 Preferred Shares. The
quarterly cash dividend was previously $0.375 per Series 9 Preferred Share up to
and including the dividend to be paid on April 30, 2024 to shareholders of record on
April 23, 2024.
Subject to certain conditions described in the prospectus
supplement dated January 22, 2019
relating to the issuance of the Series 9 Preferred Shares, CWB may
redeem the Series 9 Preferred Shares, in whole or in part, on
April 30, 2029 and on April 30 every five years thereafter.
The Series 5 Preferred Shares, the Series 6 Preferred Shares,
the Series 9 Preferred Shares and the Series 10 Preferred Shares
have not been and will not be registered in the United States under the United States
Securities Act of 1933, as amended (the "Securities Act"), or the
securities laws of any state of the
United States and may not be offered, sold or delivered,
directly or indirectly in the United
States or to, or for the account or benefit of, a "U.S.
person" (as defined in Regulation S under the Securities Act)
absent registration or an applicable exemption from such
registration requirements. This press release does not constitute
an offer to sell or a solicitation to buy securities in
the United States and any public
offering of the securities in the United
States must be made by means of a prospectus.
About CWB Financial Group
CWB is the only full-service
financial institution in Canada
with a strategic focus to meet the unique financial needs of
businesses and their owners. We provide nationwide full-service
business and personal banking, specialized financing, comprehensive
wealth management offerings, and trust services. Our teams deliver
a uniquely proactive and differentiated level of service to clients
in targeted industries where we have deep expertise. Clients choose
CWB for our highly personalized service, specialized expertise,
customized solutions and faster response times.
As a public company on the Toronto Stock Exchange (TSX), CWB
trades under the symbols "CWB" (common shares), "CWB.PR.B" (Series
5 preferred shares) and "CWB.PR.D" (Series 9 preferred shares). We
are firmly committed to the responsible creation of value for all
our stakeholders and our approach to sustainability will support
our continued success. Learn more at www.cwb.com.
SOURCE CWB Financial Group
