EDMONTON, April 1, 2019 /CNW/ - Canadian Western Bank
("CWB") (TSX: CWB) today announced the applicable dividend rates
for its non-cumulative 5-year rate reset First Preferred Shares
Series 5 (the "Series 5 Preferred Shares") (TSX: CWB.PR.B) and
non-cumulative floating rate First Preferred Shares Series 6 (the
"Series 6 Preferred Shares").
With respect to any Series 5 Preferred Shares that remain
outstanding after April 30, 2019,
commencing as of such date, holders thereof 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,
2019, and ending on April 30,
2024, will be 4.301% per annum or $0.2688125 per share per quarter, being
equal to the sum of the five-year Government of Canada bond yield as at April 1, 2019, plus 2.76%, as determined in
accordance with the terms of the Series 5 Preferred Shares.
With respect to any Series 6 Preferred Shares that may be issued
on May 1, 2019 in connection with the
conversion of the Series 5 Preferred Shares into the Series 6
Preferred Shares, holders thereof will be entitled to receive
floating rate non-cumulative preferential cash dividends on a
quarterly basis, calculated on the basis of actual number of days
elapsed in each quarterly floating rate period divided by 365, 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 three-month
period commencing on May 1, 2019, and
ending on July 31, 2019, will be
1.103% (4.412% on an annualized basis) or $0.27575 per share, being equal to the sum of the
three-month Government of Canada Treasury bill yield as at
April 1, 2019, plus 2.76%, as
determined in accordance with the terms of the Series 6 Preferred
Shares.
Beneficial owners of Series 5 Preferred Shares who wish to
retain their Series 5 Preferred Shares do not need to take any
further action. Beneficial owners of Series 5 Preferred Shares who
wish to exercise their right of conversion should instruct their
broker or other nominee to exercise such right before 5:00 p.m. (EDT) on April
15, 2019. The news release announcing such conversion right
was issued on March 11, 2019 and
can be viewed on SEDAR or CWB's website. Conversion inquiries
should be directed to CWB's Registrar and Transfer Agent,
Computershare Trust Company of Canada, at 1-800-564-6253.
The Toronto Stock Exchange ("TSX") has conditionally approved
the listing of the Series 6 Preferred Shares effective upon
conversion. Listing of the Series 6 Preferred Shares is subject to
CWB fulfilling all the listing requirements of the TSX and, upon
approval, the Series 6 Preferred Shares will be listed on the TSX
under the trading symbol "CWB.PR.E".
The Series 5 Preferred Shares and the Series 6 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 Financial Group is a diversified financial services
organization serving businesses and individuals across Canada. Operating from its headquarters in
Edmonton, Alberta, CWB's key
business lines include full service business and personal banking
offered through branches of Canadian Western Bank, and Internet
banking services provided by Motive Financial. Highly responsive
specialized financing is delivered under the banners of CWB Optimum
Mortgage, CWB Equipment Financing, CWB National Leasing, CWB Maxium
Financial and CWB Franchise Finance. Trust Services are offered
through Canadian Western Trust. Comprehensive wealth management
offerings are provided through CWB Wealth Management, which
includes the businesses of CWB McLean & Partners Wealth
Management and Canadian Western Financial. 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),
"CWB.PR.C" (Series 7 Preferred Shares) and "CWB.PR.D" (Series 9
Preferred Shares). Learn more at www.cwb.com.
SOURCE Canadian Western Bank
