VANCOUVER, BRITISH COLUMBIA--(Marketwired - April 22, 2014) - Central 1 Credit Union (Central 1) today announced that it will issue $200 million principal amount Series 4 Subordinated Notes (the Notes) that will mature on April 25, 2024.
Interest on the Notes is payable semi-annually at a fixed rate of 2.89% commencing on October 25, 2014 and continuing until April 25, 2019, and at a floating rate equal to the 90 day Bankers' Acceptance Rate plus 0.81% (paid quarterly) thereafter to maturity on April 25, 2024.
Central 1 - at its option any time on or after April 25, 2019, with the prior approval of the Office of the Superintendent of Financial Institutions (Canada), if applicable, and the Financial Institutions Commission of British Columbia - may redeem the Notes, in whole or in part. The redemption price will be par plus accrued and unpaid interest. The prior written approval of the Superintendent of Financial Institutions (Canada) is not required if Part XVI of the Cooperative Credit Associations Act (Canada) does not apply to Central 1.
The transaction is expected to close on April 25, 2014 and Central 1 will use the net proceeds for regulatory capital purposes and for general corporate purposes.
CIBC World Markets Inc. and RBC Dominion Securities Inc. are the co-lead agents for the offering in a syndicate that includes TD Securities Inc., BMO Nesbitt Burns Inc., Casgrain & Company Limited, Desjardins Securities Inc. and Scotia Capital Inc.
Subordinated debt is a direct unsecured obligation of Central 1 Credit Union and not a deposit of money with Central 1 Credit Union. Subordinated debt is not insured by the Canada Deposit Insurance Corporation or the Credit Union Deposit Insurance Corporation of British Columbia. In the event of insolvency or winding up of Central 1 Credit Union, the subordinated debt is subordinated in right of payment to all other indebtedness that is not evidenced by a subordinated note.
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
Central 1 is the central financial facility and trade association for the B.C. and Ontario credit union systems. Owned primarily by its member credit unions, 43 in B.C. and 90 in Ontario, Central 1 represents a consumer-oriented, full-service retail financial system that serves 3.2 million members and collectively holds $92.0 billion in assets.
With offices in Vancouver, Mississauga and Toronto, Central 1 provides liquidity management, direct banking and payment service solutions as well as a wide range of trade services. For more information, visit www.central1.com.