HIGH RIVER, AB, June 4, 2012 /CNW/ - Western Financial Group Inc. ("Western") announced today that it will exercise its right to redeem all of its
outstanding First Preferred Shares, Series Three (the "Series 3 Shares") in accordance with the terms and conditions attached to the Series 3
Shares. A notice of redemption was sent today to registered holders of Series 3 Shares.
The redemption date of the Series 3 Shares will be August 1, 2012 ("Redemption Date") and the redemption price will be $100 plus all accrued or declared
but unpaid dividends on each Series 3 Share, representing an aggregate
amount of $101.13, and subject to amounts required to be withheld under applicable tax
laws, if any (the "Redemption Amount").
The Redemption Amount will be payable in cash upon presentation and
surrender of the certificates representing the Series 3 Shares so
called for redemption at the offices of Computershare Investor Services
Inc. (the "Agent") set out in the Redemption Notices.
From and after the Redemption Date, the holders of Series 3 Shares will
not be entitled to exercise any of the rights attached to the Series 3
Shares, other than the right to receive the Redemption Amount.
Holders of Series 3 Shares may, until the close of business on the last
business day immediately preceding the Redemption Date, exercise their
right to convert Series 3 Shares, in whole or in part, into Redeemable
Preferred Shares of Western (the "Redeemable Preferred Shares") by surrendering the certificates representing such Series 3 Shares to
the Agent, together with a written request indicating their intent to
convert all or part of its Series 3 Shares. Holders of Series 3 Shares
electing to convert Series 3 Shares on or prior to the Redemption Date
will be entitled to receive for each converted Series 3 Share: (i) a
number of Redeemable Preferred Shares obtained by multiplying the
number of Series 3 Shares to be converted by $100 and dividing the
product by $7.25 and (ii) $1.13, representing the amount of accrued but unpaid dividends on such Series
3 Shares as of the Redemption Date.
In accordance with the Articles of the Corporation, any Redeemable
Preferred Shares issued upon the conversion of Series 3 Shares will be
immediately redeemed by the Corporation for a redemption amount of
$4.15 per Redeemable Preferred Share and any holder of such Redeemable
Preferred Shares will not be entitled to exercise any of the rights of
shareholders in respect thereof other than the right to receive the
redemption amount for such Redeemable Preferred Shares.
Holders of Series 3 Shares should note that their option to convert
Series 3 Shares into Redeemable Preferred Shares are out-of-the-money,
such that upon a conversion prior to the Redemption Date, a holder will
receive approximately $57,24 per Series 3 Share instead of $100 plus,
in each case, accrued dividends of $1.13.
About Western Financial Group
Western Financial Group is a western Canada based, diversified,
financial services company serving more than 600,000 customers. Founded
in 1996 and headquartered in High River, Alberta, Western provides
insurance, banking and investment products and services through more
than 120 office locations, the Internet (www.westernfinancialgroup.ca) and other distribution channels. With a skilled team of approximately
1,500 employees, and backed by the strong resources of its owners,
Western is committed to building the strongest financial services
company in western Canada.
Western Financial Group is a subsidiary of Desjardins Group, the leading
cooperative financial group in Canada.
This press release is not for distribution to any United States news
service or otherwise in the United States.
SOURCE Western Financial Group
For further information:
Arlene Beggs, Assistant to the President
Western Financial Group 403-652-2663