Press release from Marketwire
CWB to Hold Special Meetings of Common and Preferred Shareholders
Friday, November 15, 2013
CWB to Hold Special Meetings of Common and Preferred Shareholders18:34 EST Friday, November 15, 2013
EDMONTON, ALBERTA--(Marketwired - Nov. 15, 2013) - Canadian Western Bank (TSX:CWB) today put forth a special resolution to be voted upon at special meetings of common and preferred shareholders. The special resolution will amend CWB's By-law Three to permit an unlimited number of First Preferred shares to be issued, up to an aggregate consideration of $1.0 billion for all First Preferred shares outstanding at any time. CWB has reached the maximum number of authorized preferred shares under the existing By-law Three and is currently unable to issue additional preferred shares.
Banks are required by federal law to maintain minimum regulatory capital ratios. CWB's currently outstanding preferred shares constitute part of this capital. On April 30, 2014, the dividend yield on these shares will reset to a rate of 500 basis points over the yield on the applicable Government of Canada benchmark security unless the shares are redeemed. In consideration of the current capital market environment and the investment grade credit rating on CWB's outstanding preferred shares, management and the Board of Directors believe it is in the best interest of CWB to redeem these shares, subject to approval of the Office of the Superintendent of Financial Institutions (OSFI). In order to maintain its regulatory capital ratios, CWB will be required to issue replacement capital prior to the redemption of the outstanding preferred shares. Without an amendment to By-law Three, CWB only has the ability to issue common shares as replacement capital.
The special meetings are scheduled to be held concurrently on December 12, 2013 at 11:00 a.m. (Mountain Standard Time) in the Western Room of Canadian Western Bank Place, located at 10303 Jasper Avenue in Edmonton, Alberta. The results of the voting on the special resolutions will be posted following the meetings on CWB's website at www.cwb.com and under CWB's profile on SEDAR at www.sedar.com.
About Canadian Western Bank Group
Canadian Western Bank offers a full range of business and personal banking services across the four western provinces and is the largest publicly traded Canadian bank headquartered in Western Canada. The Bank, along with its operating affiliates, National Leasing Group Inc., Canadian Western Trust Company, Canadian Direct Insurance Incorporated, Valiant Trust Company, Adroit Investment Management Ltd., McLean & Partners, and Canadian Western Financial Ltd., collectively offer a diversified range of financial services across Canada and are together known as the Canadian Western Bank Group. The common shares of Canadian Western Bank are listed on the Toronto Stock Exchange under the trading symbol "CWB". The Bank's Series 3 Preferred Shares trade on the Toronto Stock Exchange under the trading symbol "CWB.PR.A". Refer to www.cwb.com for additional information.
FOR FURTHER INFORMATION PLEASE CONTACT:
Canadian Western Bank
Kirby Hill, CFA
Vice President, Strategy & Communications
Canadian Western Bank
Tracey Ball, FCA
Executive Vice President & CFO