Canadian Western Bank to issue 250 million of Senior Deposit Notes
EDMONTON, April 15, 2011 – Canadian Western Bank (TSX: CWB) today announced its intent to issue $250 million of Floating Rate Senior Deposit Notes (“the Notes”) to a group of institutional investors. Proceeds of the issue will be added to the Bank's general funds and will be utilized for general banking purposes.
The Notes will bear interest on a floating rate basis at 70 basis points above the average three-month Bankers Acceptance rate at the settlement date of April 26, 2011, and each quarterly coupon date thereafter. The Notes will mature on April 26, 2013 and will not be redeemable prior to the maturity date. The current rating assigned by DBRS Limited on Canadian Western Bank’s deposits and senior debt is “A (low)” with a stable trend.
“We are very pleased with the success of this placement as it will represent CWB’s first-ever issuance of Floating Rate Senior Deposit Notes in the capital markets,” said Larry Pollock, President and CEO of CWB. “The closing of this deal will also further diversify our deposit base and is an efficient source of funds to help support CWB’s ongoing growth and development.”
RBC Capital Markets, Casgrain & Company Limited and Laurentian Bank Securities Inc. acted as joint lead agents on the issue.