TORONTO, Dec. 15, 2015 /CNW/ - Equitable Group Inc. (TSX: EQB and EQB.PR.C) ("Equitable" or the "Company") today announced it has redeemed all $20 million of outstanding 6.092% Series 9 Debentures due December 15, 2020 as planned and with the pre-approval of the Office of the Superintendent of Financial Institutions. The redemption was made at par plus accrued interest to, but excluding, the redemption date for the entire current principal amount outstanding.
The redemption will reduce interest expenses on the Company's debentures by $0.6 million per year beginning in 2016. This redemption is in line with Equitable's longstanding capital plan and was, in effect, pre-funded by the issuance of Series 10 Debentures on October 22, 2012. The repayment results in an approximately 0.4% reduction in Equitable Bank's total capital ratio. The Bank's Common Equity Tier I and Tier I capital ratios will be unchanged.
"This move serves to lower our expenses without diminishing our ability to grow or altering the fact that Equitable continues to be well capitalized," said Andrew Moor, President and Chief Executive Officer.
ABOUT EQUITABLE GROUP INC.
Equitable Group Inc. serves consumers and their advisors through Equitable Bank, a diversified financial institution that operates coast to coast. Equitable Bank provides residential (prime and alternative) single family lending services, commercial lending services and a variety of savings solutions including high-interest savings products and GICs for individual Canadians. Since its founding in 1970, Equitable has grown to become Canada's ninth largest independent Schedule I Bank and a recognized service leader through its proven branchless banking approach. For more information, visit the Company's website at www.equitablebank.ca and click on Investor Relations.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
This press release contains "forward-looking statements" within the meaning of applicable Canadian securities legislation. Generally, forward-looking statements can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "planned", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", "believes", or variations of such words and phrases or state that certain actions, events or results "may" ,"could", "would", "might" or "will be taken", "occur" or "be achieved". Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, closing of transactions, performance or achievements of Equitable to be materially different from those expressed or implied by such forward-looking statements, including but not limited to: risks related to capital markets and additional funding requirements, fluctuating interest rates and general economic conditions, legislative and regulatory developments, the nature of our customers and rates of default, and competition as well as those factors discussed in Equitable's documents filed on SEDAR (www.sedar.com).
Although Equitable has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. Equitable does not undertake to update any forward-looking statements that are contained herein, except in accordance with applicable securities laws. Further information on Equitable is available at www.sedar.com.
SOURCE Equitable Group Inc.
For further information: Andrew Moor, President and Chief Executive Officer, 416-515-7000; Tim Wilson, Vice President and Chief Financial Officer, 416-515-7000