CWB announces private placement of NVCC subordinated debentures

Not for distribution to U.S. news wire services or for dissemination in the United States.

EDMONTON, Alberta – Canadian Western Bank (“CWB”) (TSX: CWB) today announced its intent to issue, on a private placement basis in Canada, $125 million aggregate principal amount of 4.840% Series G Subordinated Debentures due June 29, 2030 (Non-Viability Contingent Capital (NVCC)) (the “Debentures”). National Bank Financial Inc. acted as advisor on the placement. The expected closing date is on or about June 29, 2020. 

Interest on the Debentures will be payable semi-annually from the date of issue until June 29, 2025 at 4.840% per annum. From June 29, 2025 until maturity on June 29, 2030, the Debentures will pay a quarterly coupon at a rate of the three month bankers’ acceptance rate plus 4.102% per annum, beginning on September 29, 2025. 

On or after June 29, 2025, CWB may, at its option, with the prior approval of the Superintendent of Financial Institutions Canada, on giving not more than 60 nor less than 30 days’ notice to the registered holders of the Debentures, redeem the Debentures, in whole or in part, on any date at a redemption price equal to the outstanding principal amount plus accrued and unpaid interest to but excluding the date fixed for redemption.

Net proceeds from the private placement will be added to CWB’s general funds and utilized for general banking purposes. 

The Debentures have not been and will not be registered under the U.S. Securities Act of 1933, as amended, or under any state securities laws, and may not be offered, sold, directly or indirectly, or delivered within the United States of America and its territories and possessions or to, or for the account or benefit of, United States persons except in certain transactions exempt from the registration requirements of such Act and applicable state securities laws. This press release shall not constitute an offer to sell or a solicitation of an offer to buy securities in the United States.

FOR FURTHER INFORMATION CONTACT: 

Chris Williams
AVP, Investor Relations
CWB Financial Group
Phone: 780-508-8229
Email: [email protected]