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Preferred Share Description
Canadian Western Bank Group (CWB.PR.C)
6.25% Non-Cumulative, Redeemable, Rate-Reset, NVCC*, 1st Preferred Shares Series 7
Prospectus - March 15, 2016
DBRS Credit Update: November 29, 2018 - DBRS confirmed the ratings of Canadian Western Bank, including the Bank’s Long-Term Issuer Rating at A (low) and Short-Term Issuer Rating at R-1 (low). NVCC Preferred share credit rating is confirmed at Pfd-3. The trend on all ratings is Stable.
The Bank’s Intrinsic Assessment of A (low) and Support Assessment of SA3 are unchanged. The SA3 designation, which reflects no expectation of timely external support, results in the final rating being equivalent to the Intrinsic Assessment.
* Important Note: NVCC is short for Non-Viability Contingent Capital and it refers to the issuer's ability to convert the preferred shares into common shares if a "Trigger Event" occurs. See "Convertible by Company" section of the prospectus for the definition of a trigger event.
- DBRS Rating
- Pfd-3 Stable Trend
- DBRS Rating Date
- Shares Issued
- Issued Date
- Shares O/S
- O/S Date
- $1.5625 per share per year
- Dividend Dates
- Payable on the last day of January, April, July and October
- Dividend Details
- The Series 7 dividend is fixed at $1.5625 until July 31, 2021. On July 31st, 2021, and on July 31st every 5 years thereafter, the annual dividend rate will be reset to a rate that equals the sum of the 5-year Government of Canada Bond Yield (GCAN5YR) plus 5.47%.
- The shares are redeemable by the company on July 31, 2021 and on July 31st every five years thereafter, at $25.00 per share.
- On July 31, 2021 and on July 31st every five years thereafter holders of the Series 7 preferred shares will have the right to convert their shares into an equal number of Series 8 Floating-Rate (NVCC) preferred shares. The Series 8 Floating-Rate shares will calculated and pay, quarterly, a dividend equal the sum of the Government of Canada 3-month Treasury Bill Rate plus 5.47%. In addition, holders of the Series 8 Floating-Rate preferred shares will have the right to convert their shares into an equal number of Series 7 Rate Reset preferred shares on July 31, 2026 and on July 31st every five years thereafter.
- Transfer Agent
- Valiant Trust Company
- Valiant Trust Company
- Dividend Reinvestment Plan
- Series 7 preferred shareholders are eligible to participate in the company's DRIP plan. Preferred share dividends can be directed to purchase common shares of Canadian Western Bank Group. See the company's website for additional details. http://www.cwb.com/investor-relations/common-shareholder-information
- Convertible by Company
- Upon the occurrence of a "Trigger Event", each outstanding Preferred Share Series 7 and, if issued, each outstanding Preferred Share Series 8, will automatically and immediately be converted, without the consent of the holders thereof, into that number of fully-paid common shares of the Bank determined by dividing $25.00 plus any declared but unpaid dividends in respect of such Preferred Shares Series 7 or Preferred Shares Series 8 by the Conversion Price. The “Trigger Event” has the meaning as set out in the Office of the Superintendent of Financial Institutions Canada, Guideline for Capital Adequacy Requirements, Chapter 2 - Definition of Capital, effective January 1, 2013, as such term may be amended or superseded by OSFI from time to time.
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