Canadian Underwriter

Western to acquire 90% of outstanding debentures

August 9, 2002   by Canadian Underwriter

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Broker and financial services network Western Financial Group (TSE: WES) plans to buy back 90% of a set of convertible redeemable subordinated debentures issued in June 1998. Western made the offer to buy back the debentures, with a total value of $6 million, for cash, 9% convertible unsecured subordinated debentures or a combination of both.
Holders of 90% of the 1998 debentures have agreed to Western’s offer, amounting to $5.38 million of the total. Western will issue $4.93 million in new debentures and pay $452,000 cash.
The new debentures will bear 9% interest per annum, and are convertible at any time to Western common shares at a price of $2.50. After February 28, 2005, Western can redeem the new debentures for cash or shares if common shares are trading at 124% of the $2.50 value. The company can also repay the debentures in common shares when they mature on February 28, 2007.

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