EDMONTON, AB, April 1, 2024 /CNW/ - Canadian Western Bank ("CWB") (TSX: CWB) today announced the applicable dividend rates for its non-cumulative 5-year rate reset First Preferred Shares Series 5 (the "Series 5 Preferred Shares") (TSX: CWB.PR.B), non-cumulative floating rate First Preferred Shares Series 6 (the "Series 6 Preferred Shares"), non-cumulative 5-year rate reset First Preferred Shares Series 9 (Non-Viability Contingent Capital (NVCC)) (the "Series 9 Preferred Shares") (TSX: CWB.PR.D) and non-cumulative floating rate First Preferred Shares Series 10 (Non-Viability Contingent Capital (NVCC)) (the "Series 10 Preferred Shares").
Series 5 Preferred Shares
With respect to any Series 5 Preferred Shares that remain outstanding after April 30, 2024, commencing as of such date, holders thereof will be entitled to receive fixed rate non-cumulative preferential cash dividends on a quarterly basis, as and when declared by the Board of Directors of CWB and subject to the provisions of the Bank Act (Canada). The dividend rate for the five-year period commencing on May 1, 2024, and ending on April 30, 2029, will be 6.371% per annum or $0.3981875 per share per quarter, being equal to the sum of the five-year Government of Canada bond yield as at April 1, 2024, plus 2.76%, as determined in accordance with the terms of the Series 5 Preferred Shares.
With respect to any Series 6 Preferred Shares that may be issued on May 1, 2024 in connection with the conversion of the Series 5 Preferred Shares into the Series 6 Preferred Shares, holders thereof will be entitled to receive floating rate non-cumulative preferential cash dividends on a quarterly basis, calculated on the basis of actual number of days elapsed in each quarterly floating rate period divided by 365, as and when declared by the Board of Directors of CWB and subject to the provisions of the Bank Act (Canada). The dividend rate for the three-month period commencing on May 1, 2024, and ending on July 31, 2024, will be 1.940% (7.759% on an annualized basis) or $0.4849375 per share, being equal to the sum of the three-month Government of Canada Treasury bill yield as at April 1, 2024, plus 2.76%, as determined in accordance with the terms of the Series 6 Preferred Shares.
Beneficial owners of Series 5 Preferred Shares who wish to retain their Series 5 Preferred Shares do not need to take any further action. Beneficial owners of Series 5 Preferred Shares who wish to exercise their right of conversion should instruct their broker or other nominee to exercise such right before 5:00 p.m. (EDT) on April 15, 2024. The news release announcing such conversion right was issued on March 21, 2024 and can be viewed on SEDAR+ or CWB's website. Conversion inquiries should be directed to CWB's Registrar and Transfer Agent, Computershare Trust Company of Canada, at 1-800-564-6253.
Series 9 Preferred Shares
With respect to any Series 9 Preferred Shares that remain outstanding after April 30, 2024, commencing as of such date, holders thereof will be entitled to receive fixed rate non-cumulative preferential cash dividends on a quarterly basis, as and when declared by the Board of Directors of CWB and subject to the provisions of the Bank Act (Canada). The dividend rate for the five-year period commencing on May 1, 2024, and ending on April 30, 2029, will be 7.651% per annum or $0.4781875 per share per quarter, being equal to the sum of the five-year Government of Canada bond yield as at April 1, 2024, plus 4.04%, as determined in accordance with the terms of the Series 9 Preferred Shares.
With respect to any Series 10 Preferred Shares that may be issued on May 1, 2024 in connection with the conversion of the Series 9 Preferred Shares into the Series 10 Preferred Shares, holders thereof will be entitled to receive floating rate non-cumulative preferential cash dividends on a quarterly basis, calculated on the basis of actual number of days elapsed in each quarterly floating rate period divided by 365, as and when declared by the Board of Directors of CWB and subject to the provisions of the Bank Act (Canada). The dividend rate for the three-month period commencing on May 1, 2024, and ending on July 31, 2024, will be 2.260% (9.039% on an annualized basis) or $0.5649375 per share, being equal to the sum of the three-month Government of Canada Treasury bill yield as at April 1, 2024, plus 4.04%, as determined in accordance with the terms of the Series 10 Preferred Shares.
Beneficial owners of Series 9 Preferred Shares who wish to retain their Series 9 Preferred Shares do not need to take any further action. Beneficial owners of Series 9 Preferred Shares who wish to exercise their right of conversion should instruct their broker or other nominee to exercise such right before 5:00 p.m. (EDT) on April 15, 2024. The news release announcing such conversion right was issued on March 21, 2024 and can be viewed on SEDAR+ or CWB's website. Conversion inquiries should be directed to CWB's Registrar and Transfer Agent, Computershare Trust Company of Canada, at 1-800-564-6253.
TSX Listing
The Toronto Stock Exchange ("TSX") has conditionally approved the listing of the Series 6 Preferred Shares and the Series 10 Preferred Shares effective upon conversion. Listing of the Series 6 Preferred Shares is subject to CWB fulfilling all the listing requirements of the TSX and, upon approval, the Series 6 Preferred Shares will be listed on the TSX under the trading symbol "CWB.PR.E". Listing of the Series 10 Preferred Shares is subject to CWB fulfilling all the listing requirements of the TSX and, upon approval, the Series 10 Preferred Shares will be listed on the TSX under the trading symbol "CWB.PR.F".
The Series 5 Preferred Shares, the Series 6 Preferred Shares, the Series 9 Preferred Shares and the Series 10 Preferred Shares have not been and will not be registered in the United States under the United States Securities Act of 1933, as amended (the "Securities Act"), or the securities laws of any state of the United States and may not be offered, sold or delivered, directly or indirectly in the United States or to, or for the account or benefit of, a "U.S. person" (as defined in Regulation S under the Securities Act) absent registration or an applicable exemption from such registration requirements. This press release does not constitute an offer to sell or a solicitation to buy securities in the United States and any public offering of the securities in the United States must be made by means of a prospectus.
About CWB Financial Group
CWB is the only full-service financial institution in Canada with a strategic focus to meet the unique financial needs of businesses and their owners. We provide nationwide full-service business and personal banking, specialized financing, comprehensive wealth management offerings, and trust services. Our teams deliver a uniquely proactive and differentiated level of service to clients in targeted industries where we have deep expertise. Clients choose CWB for our highly personalized service, specialized expertise, customized solutions and faster response times.
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) and "CWB.PR.D" (Series 9 preferred shares). We are firmly committed to the responsible creation of value for all our stakeholders and our approach to sustainability will support our continued success. Learn more at www.cwb.com.
SOURCE CWB Financial Group
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