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HIGH RIVER, AB, June 27 /CNW/ - (TSX - WES) Western Financial Group Inc.
(the "Company") announced today that it has priced the financing previously
announced on June 19, 2007. A syndicate of investment dealers co-led by CIBC
World Markets Inc., Desjardins Securities Inc. and Jennings Capital Inc. and
including Acumen Capital Finance Partners Limited, are offering, on a best
efforts private placement basis, approximately $25 million of cumulative
perpetual convertible preferred shares (the "Preferred Shares") at a price of
$100.00 per Preferred Share. The closing date of the offering is expected to
be on or about July 10, 2007. The proceeds from the financing will be used to
repay indebtedness and for general corporate purposes.
The Preferred Shares will pay a cumulative dividend of 6.75% per annum
during the period commencing the date of issue and ending August 1, 2012,
payable semi-annually if, as and when declared by the Board of Directors. The
Preferred Shares will be convertible into the Company's common shares at any
time at the holder's option at a price of $7.25. The Preferred Shares will be
redeemable by the Company at their option only after August 1, 2010.
Redemption from August 1, 2010 and prior to August 1, 2012 will be at a
redemption price equal to par plus accrued and unpaid interest, provided that
the common shares of the Company are trading at a price in excess of 135% of
the conversion price. After August 1, 2012, the Preferred Shares will be
redeemable at the option of the Company at any time at a redemption price
equal to par plus accrued and unpaid interest. If not redeemed, commencing
August 1, 2012, the Preferred Shares will pay semi-annually a cumulative
dividend if, as and when declared by the Board of Directors, at a rate per
annum calculated as at August 1, 2012 and reset on each anniversary of such
date in an amount equal to 3.5% above the five year Canadian bond rate as
quoted seven days before the anniversary date. This transaction is subject to
approval of the TSX.
Western Financial Group is a leader in providing insurance, financial
services and banking services in over 80 communities, to more than 400,000
individuals and businesses in Western Canada through its WFG Agency Network
locations, its affiliated insurance brokers, Western Life Assurance Company
and Bank West.
The common shares of Western Financial Group are traded on the Toronto
Stock Exchange under the symbol "WES".
For further information:
For further information: Arlene Beggs, Assistant to the President,
Western Financial Group, (403) 652-2663