Western Financial Group Inc. has completed its previously announced domestic convertible debenture financing, the company said Tuesday.

The financing was completed by way of private placement and as a result has issued $16.71 million aggregate principal amount of convertible unsecured subordinated debentures.

“Net proceeds from the financing will be used to increase ownership of certain strategic investments and for general corporate purposes,” the company said.

The bebentures, which are unsecured and subordinated to senior indebtedness of the company, will bear interest at the rate of 12%, payable semi-annually in arrears, and will mature on June 30, 2014. The bebentures will be convertible by the holder into common shares of WFG at a conversion price of $3 per common share, subject to adjustment.

A syndicate of agents, led by TD Securities Inc. and comprised of TD, CIBC World Markets Inc., Desjardins Securities Inc., GMP Securities L.P., Jennings Capital Inc., Acumen Capital Finance Partners Limited and Industrial Alliance Securities Inc., acted as the company’s agents in connection with the private placement.

WFG provides insurance, financial and banking services to more than 500,000 individuals and businesses in over 100 communities across Western Canada through its WFG Agency Network locations, affiliated insurance brokers, Western Life Assurance Company and Bank West.

IE