Western Financial Group announces closing of first preferred share, series five offering


    HIGH RIVER, AB, Sept. 3 /CNW/ - Western Financial Group Inc. ("Western
Financial Group" or the "Company") is pleased to announce that it has closed
the maximum amount of its offering of first preferred shares, series five (the
"Preferred Shares") and as a result, has issued 300,000 Preferred Shares for
gross proceeds of $30,000,000. Net proceeds from the offering will be used for
general corporate purposes and to fund ongoing capital requirements for the
Company's subsidiaries.
    The Preferred Shares will be entitled to fixed cumulative preferential
cash dividends, if, as and when declared by the Company's board of directors
at a rate of $9.00 per share per annum, to accrue from the date of original
issue, payable in equal instalments of $4.50 per share on March 31 and
September 30 of each year until (and including) March 31, 2015. The Preferred
Shares will be convertible into the Company's common shares at any time at the
holder's option at a price of $2.81 per common share. The Preferred Shares
will be redeemable by the Company at its option only after September 30, 2012.
Redemption from September 30, 2012 and prior to September 30, 2014 will be at
a redemption price equal to $100 per Preferred Share plus all accrued or
declared and unpaid dividends, provided that the common shares of the Company
are trading at a price in excess of 135% of the conversion price. On or after
September 30, 2014, the Preferred Shares will be redeemable at the option of
the Company at any time at a redemption price equal to $100 per Preferred
Share plus all accrued or declared and unpaid dividends. If not redeemed,
commencing March 31, 2015, the Preferred Shares will pay semi-annually a
cumulative dividend if, as and when declared by the Company's bard of
directors, at a rate per annum calculated as at March 31, 2015 and reset on
each anniversary of such date in an amount equal to 6.28% above the five year
Government of Canada benchmark bond rate as quoted on the Bloomberg page
"GCAN5YR (less than)INDEX(greater than)" or comparable sources at 10:00 a.m.
(Toronto time) as quoted ten days before the anniversary date.
    The first dividend will be payable on March 31, 2010 in the amount of
$5.17808 per Preferred Share.
    TD Securities Inc., CIBC World Markets Inc., RBC Dominion Securities
Inc., Desjardins Securities Inc., Jennings Capital Inc., GMP Securities L.P.,
Acumen Capital Finance Partners Limited and Industrial Alliance Securities
Inc. acted as the Company's agents in connection with the offering.

    Western Financial Group is a leader in providing insurance, financial and
banking services in over 90 communities to more than 500,000 individuals and
businesses in Western Canada through its wholly-owned networked offices, its
affiliated insurance brokers, Western Life Assurance Company and Bank West.
    The Preferred Shares are traded on the Toronto Stock Exchange under the
symbol "WES.PR.C" and the common shares of the Company are traded on the
Toronto Stock Exchange under the symbol "WES".

    This press release is not for distribution to any United States news
services or otherwise in the United States.

    Forward-Looking Information

    Forward-looking statements involve numerous assumptions, risks and
uncertainties, including the risk that prediction and other forward-looking
statements may not prove to be accurate. We caution the reader not to place
undue reliance on these disclosures, as a number of important factors could
cause actual results to differ materially from the estimates and comments
expressed in them. Such factors may include, but are not limited to: changing
financial and economic conditions in Canada, particularly in Western Canada;
regulatory developments; competition industry trends and availability of
capital resources; and our anticipated success in managing our risks. We
caution readers that the foregoing list is not exhaustive. Except required by
law, we do not undertake to update any forward-looking statements, written or
oral, that we may make from time to time regarding our operations and

For further information:

For further information: on Western Financial Group, please visit
www.westernfinancialgroup.net, or contact: Scott Tannas, President and Chief
Executive Officer, Western Financial Group, (403) 652-2663,

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Western Financial Group

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