Equitable Group Inc. completes $50 million preferred share offering


    TSX Symbol: ETC

    TORONTO, Sept. 1 /CNW/ - Equitable Group Inc. (the "Company") today
announced that it has successfully raised total proceeds of $50 million by way
of a bought deal prospectus offering and private placement offering.
    A total of 2,000,000 Non-Cumulative 5-Year Rate Reset Preferred Shares,
Series 1 of the Company (the "Series 1 Preferred Shares") were sold at a price
of $25.00 per share. Of the shares issued, 1,640,000 were placed on a bought
deal basis with a group of underwriters led by National Bank Financial Inc.
and GMP Securities L.P. The bought deal raised gross proceeds of $41 million,
which included the concurrent exercise of the over-allotment option of an
additional 200,000 Series 1 Preferred Shares. The Company sold the remaining
360,000 shares at $25.00 per share on a private placement basis to Canadian
Western Bank.
    The Company used the total proceeds from the offerings to acquire
Non-Cumulative 5-Year Rate Reset Preferred Shares, Series 1 (the "Trust Series
1 Preferred Shares") from its wholly-owned subsidiary, The Equitable Trust
Company ("Equitable Trust"), which qualify as Tier 1 capital for Equitable
Trust, with terms and conditions similar to the Series 1 Preferred Shares
issued by Equitable Group.
    "These transactions support our growth strategy by further strengthening
our capital position without dilution to our common shareholders," said Andrew
Moor, Equitable Group President and Chief Executive Officer. "With these
offerings completed, we look forward to maintaining Equitable's enhanced
balance sheet while profitably deploying capital in markets that offer us
excellent potential."
    The Series 1 Preferred Shares yield 7.25% annually, payable quarterly, as
and when declared by the Board of Directors of the Company for an initial
period ending September 30, 2014. Thereafter, the dividend rate will reset
every five years at a level of 4.53% over the then five-year Government of
Canada bond yield. Holders of Series 1 Preferred Shares will, subject to
certain conditions, have the option to convert their shares to Non-Cumulative
Floating Rate Preferred Shares, Series 2 (the "Series 2 Preferred Shares") on
September 30, 2014 and on September 30 every five years thereafter. Holders of
the Series 2 Preferred Shares will be entitled to a floating quarterly
dividend rate equal to the 90-day Canadian Treasury Bill Rate plus 4.53%, as
and when declared by the Board of Directors of the Company.
    The Series 1 Preferred Shares and Series 2 Preferred Shares of the
Company were not registered under the U.S. Securities Act of 1933, as amended,
and may not be offered or sold in the United States absent registration or an
applicable exemption from the registration requirements. This news release
shall not constitute an offer to sell or the solicitation of an offer to buy,
nor shall there be any sale of the securities in any State in which such
offer, solicitation or sale would be unlawful.

    About Equitable Group Inc.

    Equitable Group Inc. is a leading niche mortgage lender. Its primary
business is first mortgage financing, which it offers through The Equitable
Trust Company, its wholly-owned subsidiary. Founded in 1970, Equitable Trust
is a federally regulated trust company. It serves single family, small and
large commercial borrowers and their mortgage advisors, as well as the
investing public as a provider of Guaranteed Investment Certificates.
Equitable's non-branch business model, valued relationships with third-party
mortgage professionals and deposit-taking agents, and disciplined lending
practices have allowed the Company to grow profitably and efficiently for many
years. The common shares of Equitable Group Inc. are listed on the Toronto
Stock Exchange under the trading symbol of "ETC". For more information, visit

    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", or "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 the Company
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 the Company's documents
filed on SEDAR (www.sedar.com).
    Although the Company 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. The Company does not undertake to update any forward-looking
statements that are contained herein, except in accordance with applicable
securities laws. Further information on the Company is available at
    This news release and the information contained herein does not
constitute an offer of securities for sale in the United States and securities
may not be offered or sold in the United States absent registration or
exemption from registration.

For further information:

For further information: John Ayanoglou, (416) 515-7000

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