Pacific & Western Bank of Canada and Pacific & Western Credit Corp. complete $10,875,000 offering; Pacific & Western Credit Corp. files early warning report

/NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE U.S./

LONDON, ON, Aug. 27, 2013 /CNW/ - Pacific & Western Bank of Canada (the "Bank") (TSX:PWB) and Pacific & Western Credit Corp. ("PWC") (TSX:PWC) are pleased to announce the completion of the offering (the "Offering") of Common Shares of the Bank ("Common Shares"), consisting of the Bank's initial public offering (the "Treasury Offering") of Common Shares and PWC's secondary offering (the "Secondary Offering") of Common Shares.

A total of 1,500,000 Common Shares were sold under the Offering at a price of $7.25 per Common Share, for aggregate gross proceeds of $10,875,000.  The Treasury Offering consisted of the issuance of 400,000 Common Shares by the Bank, for gross proceeds of $2,900,000 to the Bank.  The Secondary Offering consisted of the sale of 1,100,000 Common Shares by PWC, for gross proceeds of $7,975,000 to PWC.

The Common Shares will commence trading today on the Toronto Stock Exchange under the symbol "PWB".

"We are delighted with the market's receptiveness to our Offering and with the display of public confidence for Pacific & Western Bank of Canada," said David Taylor, President & Chief Executive Officer.  "We are looking forward to continued growth and to achieving our goals as a new publicly traded bank on the Toronto Stock Exchange."

The Offering was made through a syndicate of agents led by RBC Dominion Securities Inc. and including PI Financial Corp., Dundee Securities Ltd., Industrial Alliance Securities Inc. and MGI Securities Inc. (collectively, the "Agents"). The Agents have been granted an option (the "Over-Allotment Option"), exercisable in whole or in part for a period of 30 days following closing of the Offering, to purchase up to an additional 225,000 Common Shares from the Bank at a price of $7.25 per Common Share.

The Bank plans to use the net proceeds of the Treasury Offering to reduce the amount of its outstanding subordinated notes that are held by a third party.  PWC plans to use the first $3.0 million in net proceeds of the Secondary Offering for the purpose of satisfying its ongoing working capital requirements.  Immediately following closing of the Offering, PWC invested the net proceeds it received from the Secondary Offering above $3.0 million to subscribe for an additional 620,206 Common Shares (the "Additional Shares") at a price of $7.25 per Common Share, for an aggregate subscription price of approximately $4,496,494.  The Bank intends to use the proceeds from the sale of Additional Shares toward the partial repayment of the subordinated notes of the Bank referenced above.

Following the Offering and sale of Additional Shares, PWC (located at 2002 - 140 Fullarton Street, London, Ontario, N6A 5P2) owns, controls and directs an aggregate of 17,712,171 Common Shares (or approximately 92.19% of the Bank's issued and outstanding Common Shares).  PWC issued an early warning report today, pursuant to the early warning requirements of National Instrument 62-103, with respect to its holdings of Common Shares.  For further information and to obtain a copy of the early warning report filed under applicable Canadian provincial securities legislation in connection with the transactions hereunder, please visit PWB's profile on the SEDAR website at www.sedar.com or contact Richard Vanlerberghe, General Counsel and Corporate Secretary, at [phone].

The Bank, a Canadian Schedule I chartered bank, raises deposits through various deposit brokers located across Canada and invests these deposits in loans, leases, commercial mortgages, residential development mortgages and debt of corporations.

No securities regulatory authority has either approved or disapproved of the contents of this news release.  The securities described above have not been registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements.  This news release does not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of the securities in any state in which such offer, solicitation or sale would be unlawful.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

Certain information contained in this news release, including statements relating to the potential exercise of the Over-Allotment Option, the use of proceeds of the Offering and any other statements regarding the Bank's or PWC's future expectations, beliefs, goals or prospects constitute forward-looking information within the meaning of applicable securities legislation (collectively, "forward-looking statements").  All statements in this news release that are not statements of historical fact (including statements containing the words "expects", "does not expect", "plans", "proposed", "anticipates", "does not anticipate", "believes", "intends", "estimates", "estimates", "projects", "potential", "scheduled", "forecast", "budget" and similar expressions) should be considered forward-looking statements.  By their very nature, forward-looking statements involve numerous factors and assumptions, including, without limitation, the expectations and beliefs of management and the potential exercise of the Over-Allotment Option.  Although the Bank considers these factors and assumptions to be reasonable based on information currently available, such factors and assumptions are not exhaustive and may prove to be incorrect.

All such forward-looking statements are subject to known and unknown risks, uncertainties and other factors, many of which are beyond each of PWC's and the Bank's ability to control or predict.  A number of important factors could cause actual results or events to differ materially from those indicated or implied by such forward-looking statements, including without limitation: the receipt of applicable regulatory approvals may not be obtained on the terms expected or on the anticipated schedule and the volatility of the marketplace.

Neither the Bank nor PWC assumes any obligation to update the information in this communication, except as otherwise required by law.  Additional information identifying risks and uncertainties is contained in each of the Bank's and PWC's filings with the various provincial securities commissions which are or will be available online at www.sedar.com.  Forward-looking statements are provided for the purpose of providing information about the current expectations, beliefs and plans of the management of each of the Bank and PWC.  Readers are cautioned that such statements may not be appropriate for other purposes.  Readers are also cautioned not to place undue reliance on these forward-looking statements.  These forward-looking statements speak only as of the date hereof.

For further information, please contact:

Investor Relations: Wade MacBain, Director, [phone], [email protected]
Public Relations & Media: Tel Matrundola, Vice-President, [phone], [email protected]

SOURCE: Pacific & Western Credit Corp.

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