Western Financial seeks USD25m from public stock offering, private placement

11 June 2010 - Canadian insurance and banking services provider Western Financial Group Inc (TSE:WES) said on Thursday it was on track to raise some USD25m (EUR20.7m) from a public offering and a private placement of common stock.

The company said it had agreed with a group of underwriters, co-led by TD Securities and GMP Securities, to buy on a "bought deal" basis 5.665 million of its common shares at USD2.65 apiece. The gross proceeds from the public offering, which are estimated at USD15m, would rise to USD17.3m if the underwriters take full advantage of the 30-day greenshoe option for 849,750 additional shares, the company said in a statement.

At the same time, Western Financial will offer USD10m of common shares to certain institutional investors at the above price with TD Securities serving as lead agent of the private placement.

The two equity offerings are expected to close on or around 29 June 2010.

Western Financial said it will initially add the raised funds to working capital and later use the proceeds to support its insurance brokerage acquisition plan and for general corporate purposes.

Western Financial caters to the financial needs of over 500,000 individuals and corporates in Western Canada through own network of offices, affiliated insurance brokers, Western Life Assurance Company, Bank West and Western Financial Insurance Company.