Central 1 Credit Union

Central 1 Credit Union

October 06, 2009 12:41 ET

Central 1 Credit Union Announces Offering of 4% Series 2 Subordinated Notes due 2019

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 6, 2009) - Central 1 Credit Union ("Central 1") today announced that it will issue $150 million principal amount of 4.00% Series 2 Subordinated Notes due 2019 (the "Notes").

Interest on the Notes is payable semi-annually at a fixed rate of 4.00% from the date of issue to, but excluding, October 9, 2014, and at a floating rate equal to the rate on 90-day Bankers' Acceptances plus 2.40% (paid quarterly) thereafter to maturity on October 9, 2019.

Central 1, at its option, with the prior approval of the Office of the Superintendent of Financial Institutions (Canada) and the Financial Institutions Commission of British Columbia, may redeem the Notes, in whole or in part. If redeemed prior to October 9, 2014, the redemption price will be the greater of the "Canada Yield Price" and par plus accrued and unpaid interest. On or after October 9, 2014, the Notes are redeemable at par plus accrued and unpaid interest. The "Canada Yield Price" is the price that would provide a yield from the redemption date to October 9, 2014 equal to the yield that a non-callable issue of Government of Canada bonds would carry from the redemption date to October 9, 2014 plus 0.39%.

The transaction is expected to close on October 9, 2009 and the net proceeds will be used by Central 1 for regulatory capital purposes and for general corporate purposes including the potential acquisition by Central 1 of an approximate 27% interest in The CUMIS Group Limited, as previously announced by Central 1.

CIBC World Markets Inc. and RBC Capital Markets are the co-lead agents for the offering in a syndicate that includes TD Securities Inc.

The securities have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements. This news release shall not constitute an offer to sell in the United States.

About Central 1:
With $9.5 billion in assets, Central 1 Credit Union is the central liquidity management facility and trade association for its nearly 200 member credit unions in B.C. and Ontario. From offices in Vancouver, B.C., and Mississauga, Ont., more than 500 employees provide a wide range of services, including liquidity management, payments settlement, Internet financial services and trade association functions. More information about Central 1 is available at www.sedar.com.

Contact Information

  • Central 1 Credit Union
    Art Chamberlain
    Media Relations Manager
    905-282-8534 or 1-800-661-6813, ext. 8534