Western Financial Group Inc. announced today that it has retained a syndicate of agents to offer on a best efforts private placement basis, between $15 and $25 million of cumulative perpetual convertible preferred shares at a price of $100 a share.

The proceeds from the financing will be used to repay indebtedness and for general corporate purposes.

The shares will pay a cumulative dividend of 6.75% per annum during the period commencing the date of issue and ending Aug. 1, 2012, payable semi-annually if, as and when declared by the board of directors.

The shares will be convertible into the company’s common shares at any time at the holder’s option at a price to be determined. The preferred shares will be redeemable by the company at their option only after Aug. 1, 2010. Redemption from Aug, 1, 2010 and prior to Aug.1, 2012 will be at a redemption price equal to par plus accrued and unpaid interest, provided that the common shares of the company are trading at a price in excess of 135% of the conversion price.

After Aug. 1, 2012, the preferred shares will be redeemable at the option of the company at any time at a redemption price equal to par plus accrued and unpaid interest, If not redeemed, commencing Aug. 1, 2012, the preferred shares will pay semi-annually a cumulative dividend if, as and when declared by the board, at a rate per annum calculated as at Aug. 1, 2012 and reset on each anniversary of such date in an amount equal to 3.5% above the five year Canadian bond rate as quoted seven days before the anniversary date.

The synicate of agents is co-led by CIBC World Markets Inc., Desjardins Securities Inc. and Jennings Capital Inc. and includes Acumen Capital Finance Partners Limited.

Western Financial Group is a leader in providing insurance, financial services and banking services in over 80 communities, to more than 400,000 individuals and businesses in Western Canada through its WFG Agency Network locations, its affiliated insurance brokers, Western Life Assurance Company and Bank West.