Press release from CNW Group
Equitable Group Inc. to Redeem Series 1 Preferred Shares
Thursday, August 21, 2014
Equitable Group Inc. to Redeem Series 1 Preferred Shares17:01 EDT Thursday, August 21, 2014
/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/
TORONTO, Aug. 21, 2014 /CNW/ - Equitable Group Inc. (TSX: EQB, EQB.PR.A and EQB.PR.C) (the "Company") announced its intention to redeem all of its issued and outstanding Non-Cumulative 5-Year Rate Reset Preferred Shares, Series 1 (the "Series 1 Preferred Shares") for cash. The redemption will occur on September 30, 2014 at a redemption price of $25.00 per Series 1 Preferred Share.
In addition, the Company will pay $0.453125 of declared and unpaid dividends per Series 1 Preferred Share. This results in a total amount of $25.453125 per share to be paid upon surrender of Series 1 Preferred Shares.
There are 2,000,000 Series 1 Preferred Shares outstanding, representing $50 million of capital. The redemption of the Series 1 Preferred Shares will be financed out of the funds raised by the Company resulting from its recent issuance of $75 million Non-Cumulative 5-Year Rate Reset Preferred Shares, Series 3.
Holders of Series 1 Preferred Shares should contact the financial institution, broker or other intermediary through which they hold the shares to confirm how they will receive their redemption proceeds.
About Equitable Group Inc.
Equitable Group Inc. is a growing Canadian financial services business that operates through its wholly-owned subsidiary, Equitable Bank. Equitable Bank is a Schedule I Bank regulated by the Office of the Superintendent of Financial Institutions Canada with total assets of approximately $12 billion, with more than 300 employees and proven capabilities in lending and deposit-taking. The Company's integrated operations are organized according to specialty. We serve retail and commercial customers across Canada with a range of savings solutions and mortgage lending products. Within Equitable Bank's Core Lending business, Single Family Lending Services funds mortgages for owner-occupied and investment properties across Canada while Commercial Lending Services provides mortgages on a variety of commercial properties on a national basis. Equitable's Securitization Financing business originates and securitizes insured residential mortgages under the Canada Mortgage and Housing Corporation administered National Housing Act. Measured by assets, Equitable Bank was the ninth largest independent Schedule I Bank in Canada at March 31, 2014. For more information, visit the Company's website at www.equitablebank.ca and click on Investor Relations.
SOURCE Equitable Group Inc.
For further information:
President and Chief Executive Officer
Vice-President and Chief Financial Officer