Central 1 Credit Union closes C$200 million offering of subordinated notes

Date closed: 4/25/2014

Value: C$200 million

On April 25, 2014, Central 1 Credit Union (Central 1) closed its C$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.

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.

Central 1, headquartered in Vancouver, British Columbia, is the central financial facility and trade association for the B.C. and Ontario credit union systems.

BLG represented Central 1 Credit Union with a team led by Warren Learmonth that included Stephen Robertson,  Elly Bahrami and Scott Howie.