Company Website: http://www.pwbank.com
LONDON, Ontario -- (Business Wire)

Pacific & Western Bank of Canada (the "Bank") (TSX:PWB) is pleased to announce the completion of the offering (the "Offering") of non-cumulative 5-year rate reset preferred shares, series 1 (the "Series 1 Preferred Shares") in the capital of the Bank at a price of $10.00 per share (the "Offering Price").

A total of 1,461,460 Series 1 Preferred Shares were sold at the Offering Price, for aggregate gross proceeds of $14,614,600.

The Series 1 Preferred Shares will commence trading today on the Toronto Stock Exchange under the ticker symbol "PWB.PR.A".

"We are pleased with the market’s interest in our first preferred share offering”, said David Taylor, President & Chief Executive Officer. “This new capital will be utilized to fuel the continued growth of the Bank’s loan and lease portfolio, particularly in our Bulk Purchase Program where we are providing much needed capital to Canadian small businesses.”

The Offering was made through a syndicate of agents led by Industrial Alliance Securities Inc. and including Dundee Securities Ltd., Haywood Securities Inc., Mackie Research Capital Corporation, PI Financial Corp., Burgeonvest Bick Securities Limited and Leede Financial Markets Inc. (collectively, the "Agents"). The Bank has granted the Agents an option (the "Over-Allotment Option"), exercisable in whole or in part, to sell, as agents, up to 219,219 Series 1 Preferred Shares (equal to 15% of the number of Series 1 Preferred Shares sold pursuant to the Offering) on the same terms as set out above, to cover over-allotments, if any, and for market stabilization purposes, exercisable at any time within 30 days of closing.

For the initial period ending October 31, 2019, the Series 1 Preferred Shares will yield 7.0% annually, payable quarterly, as and when declared by the Board of Directors of the Bank, based on the stated issue price per share. Thereafter, the dividend rate will reset every five years at a level of 543 basis points over the then 5-year Government of Canada bond yield.

Subject to regulatory approval, the Bank has the right to redeem up to all of the then outstanding Series 1 Preferred Shares on October 31, 2019, and on October 31 every five years thereafter, at a price of $10.00 per share.

Should the Bank choose not to exercise its right to redeem the Series 1 Preferred Shares, holders of these shares will have the right to convert their shares into an equal number of non-cumulative floating rate preferred shares, series 2 (the "Series 2 Preferred Shares"), subject to certain conditions, on October 31, 2019, and on October 31 every five years thereafter. Holders of the Series 2 Preferred Shares will be entitled to receive quarterly floating dividends, as and when declared by the Board of Directors of the Bank, equal to the 90-day Government of Canada Treasury Bill rate plus 543 basis points.

The Series 1 Preferred Shares and the Series 2 Preferred Shares will qualify as Tier 1 capital of the Bank.

The Bank, a Canadian Schedule I chartered bank, operates using a “branchless model”. It raises deposits through a network of deposit brokers located across Canada and invests these deposits in consumer and commercial loans and leases and residential and commercial mortgages.

No securities regulatory authority has either approved or disapproved of the contents of this news release. The securities described above have not been registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This press release does not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any state in which such offer, solicitation or sale would be unlawful.

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

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

Certain information contained in this news release, including statements relating to the potential exercise of the Over-Allotment Option, the use of proceeds of the Offering and any other statements regarding the Bank's future expectations, beliefs, goals or prospects, constitute forward-looking information within the meaning of applicable securities legislation (collectively, "forward-looking statements"). All statements in this news release that are not statements of historical fact (including statements containing the words "expects", "does not expect", "plans", "proposed", "anticipates", "does not anticipate", "believes", "intends", "estimates", "projects", "potential", "scheduled", "forecast", "budget" and similar expressions) should be considered forward-looking statements. By their very nature, forward-looking statements involve numerous factors and assumptions, including, without limitation, the expectations and beliefs of management and the potential exercise of the Over-Allotment Option. Although the Bank considers these factors and assumptions to be reasonable based on information currently available, such factors and assumptions are not exhaustive and may prove to be incorrect.

All such forward-looking statements are subject to known and unknown risks, uncertainties and other factors, many of which are beyond the Bank's ability to control or predict. A number of important factors could cause actual results or events to differ materially from those indicated or implied by such forward-looking statements, including, without limitation: the receipt of applicable regulatory approvals may not be obtained on the terms expected or on the anticipated schedule and the volatility of the marketplace.

The Bank does not assume any obligation to update the information in this communication, except as otherwise required by law. Additional information identifying risks and uncertainties is contained in the Bank's filings with the various provincial securities commissions which are or will be available online at www.sedar.com. Forward-looking statements are provided for the purpose of providing information about the current expectations, beliefs and plans of the management of the Bank. Readers are cautioned that such statements may not be appropriate for other purposes. Readers are also cautioned not to place undue reliance on these forward-looking statements. These forward-looking statements speak only as of the date hereof.

Contacts:

Pacific & Western Bank of Canada
Investor Relations:
Wade MacBain, 800-244-1509
Director
wadem@pwbank.com
Public Relations & Media:
Tel Matrundola, 416-203-0882
Vice-President
telm@pwbank.com

Visit our website at: http://www.pwbank.com

Source: Pacific & Western Bank of Canada