Canadian Western Bank today announced that it intends to redeem all of the outstanding 5.50% convertible subordinated debentures to common shares on December 14.

“The main purpose of the conversion is to increase the number of CWB shares available in response to market demand,” said Larry Pollock, president and CEO, in a release.

The bank says the trustee will convert all outstanding debentures into common shares on or before December 13. The debentures are convertible at the option of the holder at a conversion price of $30.50. No accrued interest since the last interest payment date is payable upon conversion.

The debentures have also been redeemable by the bank since April 1, 2003.

As a result of the bank’s notice, approximately $42.5 million of the remaining debentures from the original $50 million issued will convert and result in the issuance of approximately 1.393 million common shares.

http://www.newswire.ca/en/releases/archive/November2004/05/c8462.html