CWB.PR.A Called For Redemption

Tagged on to the end of Canadian Western Bank’s new issue announcement was the line:

Subject to the approval of OSFI, CWB intends to redeem the currently outstanding non-cumulative 5-year rate reset First Preferred Shares Series 3 on April 30, 2014 in accordance with the terms of such shares.

This issue trades as CWB.PR.A and was added to the HIMIPref™ database in December 2012, after a tumultuous start of trading 2009-3-2 after being announced 2009-2-5. The warrants announced as part of that underwriting have done really well – exercisable for common at $14, which closed today at $36.43. Who needs dividends?

CWB.PR.A was a FixedReset, 7.25%+500, so it’s not really surprising that it’s been called.

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