CWB announces private placement of NVCC subordinated debentures

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EDMONTON, AB, June 25, 2020 /CNW/ - 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.

About CWB Financial Group

CWB is a diversified financial services organization known for a highly proactive client experience serving businesses and individuals across Canada. Operating from headquarters in Edmonton, Alberta, CWB's key business lines include full service business and personal banking offered through branch locations of Canadian Western Bank and Internet banking services provided by Motive Financial. Highly responsive nation-wide specialized financing is delivered under the banners of CWB Optimum Mortgage, CWB Equipment Financing, CWB National Leasing, CWB Maxium Financial and CWB Franchise Finance. Trust services are offered through CWB Trust Services. Comprehensive wealth management services are provided through CWB Wealth Management and its affiliate brands, including TE Wealth, CWB McLean & Partners, Leon Frazer & Associates, and Canadian Western Financial. As a public company on the Toronto Stock Exchange (TSX), CWB trades under the symbols "CWB" (common shares), "CWB.PR.B" (Series 5 Preferred Shares), "CWB.PR.C" (Series 7 Preferred Shares) and "CWB.PR.D" (Series 9 Preferred Shares). Learn more at www.cwb.com.

Caution Regarding Forward-Looking Statements

Certain information contained herein constitutes forward-looking information under applicable securities laws. Forward-looking statements in this news release include, but are not limited to, statements with respect to the timing of completion and size of the private placement of the Debentures and the use of proceeds. These statements are based on current expectations and are inherently subject to significant risks, uncertainties and changes in circumstances, many of which are beyond the control of CWB. These risks include, but are not limited to, the failure or delay in satisfying any of the conditions to the completion of the private placement. Except as required by law, CWB does not undertake to update any forward-looking statements, whether written or oral, that may be made from time to time, by it or on its behalf. The forward-looking information contained in this press release is presented for the purpose of interpreting the information contained herein and may not be appropriate for other purposes.

SOURCE CWB Financial Group

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