Canadian Western Bank has 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”) …
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.
CWB.PR.B was issued as a FixedReset, 4.40%+276, that commenced trading 2014-2-10 after being announced 2014-1-31. The extension was announced 2019-3-11. It reset at 4.301% effective 2019-5-1. I recommended against conversion and there was no conversion. Notice of extension was announced 2024-3-21. The issue is tracked by HIMIPref™ but relegated to the Scraps – FixedReset (Discount) index on credit concerns.
Hi James
The title of this post is wrong. As it states in the body of the post 6.371% is the new rate. I was somewhat disappointed when I did not receive 6.731% with the July distribution. Oh well.
The title of this post is wrong. As it states in the body of the post 6.371% is the new rate.
Oops! Sorry! Fixed it!
Someone posted a few weeks ago about the capital restructuring of the CWB preferred shares on Prefblog and I cannot find it. Mr. Hymas never picked up on it. This is a link.
https://www.cwb.com/en/news/2024/national-bank-and-canadian-western-bank-announce-cwb-tier-1-capital-reorganization
I own some CWB.PR.B in my Investor’s Edge account. On Oct. 29 CIBCIE created some “temporary” CWB preferred shares (with $0 book value) for me. I guess this part of the reorganization. I have reached out to CIBCIE to explain this.
I also reached out to CIBCIE to find out about the voting process. One will get $.50/share if one votes on the proposal. What is not to like about free money.
On November 8 I received a package in the mail from CIBCIE about the proposed “Preferred Share Term Amendments”and a meeting on November 28, 2024 to vote on the matter. It is 1/2” thick. I read some of the document. It explains the benefit of the merger and the reasons for changing the CWB preferred shares to NA preferred shares. I will vote yes on the proposal.
To vote one must contact their intermediary. No online voting for shareholders. The meeting is soon so if one wants to vote they must meet the deadline of their intermediary. Those who vote, whether yea or nay, are entitled to receive a $.50/share consent fee if certain conditions are met. The consent fee becomes payable only if and when the Proposed Amendments come into force.
I exchanged two emails today with my contact at CIBCIE. I found out that CIBCIE has not yet set the date when they will take my vote on the proposal for the CWB preferred shares. My contact will check back with me on November 18.
Tuesday, Nov.13, 2024 , after 4:00PM, CIBCIE emailed to let me know they were ready to accept my vote on the CWB preferred share proposal.
I connected with my contact today and we got it done. Getting it done involved my contact reading the proposal to me with a long list of disclaimers. It took over 10 minutes. I am hard of hearing. Did I understand everything?
My contact asked if I had any concerns and I suggested to him I believe the CIBCIE process should have a document sent to me which would have the information he read to me presented in writing. I could then vote and sign off on the proposal and return it to him by email. Is this the best CIBCIE can do?
I was told that if the $.50/share consent fee is paid it will be considered “Other” income.
Today, November 16, I had a call from someone at CWB urging me to vote on the proposal. She was reading from a script. I soon ended her speil by explaining that I had already voted. I think this is the first time I have ever had a call from a corporation on a matter where I had the right to vote. I am 70 years old. I only own 1,000 shares of CWB.PR.B.