Concentra announces it will issue $100 million in Preferred Shares (Class D shares) to credit unions across Canada for subscription. Concentra reserves the right to ensure geographic diversity within the issuance and allocate subscriptions accordingly. Closing of this offer is November 25, 2015.
Class D Shares provide the opportunity for credit unions to diversify their portfolio and increase financial returns and growth. Class D shares are being issued at $25 per share with a minimum investment of $250,000, target rate is 4.6%, subject to Government of Canada five-year bond rate for November 16; dividends are non-cumulative and paid quarterly. Class D shares are redeemable after five years by Concentra from the date of issuance, requiring the consent of the Office of Superintendent of Financial Institutions (OSFI). A draft Subscription Agreement, which includes the Class D, Series 1 Share Provisions and specific details on the share offering are included for your review (Appendix 2).
With seven consecutive years of solid, stable financial performance, Concentra is financially strong and well-positioned for the future. The year 2014 ended with total on-balance-sheet assets of $6.7 billion resulting in total assets under administration of $33.3 billion. Growth of on-balance-sheet assets for the year was 11.4% as compared to an increase of 4.1% in the previous year. Consolidated earnings in 2014 resulted in a net income of $23.2 million with an 8.6% return on equity. Concentra is again on track to strong financial results in 2015.
Concentra intends to use the proceeds of the Preferred Share offering to support its strategic vision to build scope and scale to support a thriving, robust credit union system in Canada. The company will continue its focus on strengthening relationships with credit unions and other system stakeholders, developing responsive solutions and providing expertise that will meet he emerging needs of credit unions across Canada.
Steps to Purchase
Please follow the instructions below in order to take advantage of this investment option no later than the closing date of November 25, 2015. Please note that once Concentra reaches the maximum issuance of $100 million, Concentra reserves the right to close this offering.
- Complete and e-mail the Expression of Interest (Appendix 1) Attention: Garry Pearce, VP, Treasury
- Concentra will complete the Subscription Agreement, with the information provided in your expression of interest (Appendix 1), and return it to you for execution.
- Settlement to your credit union will follow on December 1, 2015.
For more information or if you have any questions, please contact: Garry Pearce, VP Treasury at 306-566-1793.
Join us for a webinar information session on Wednesday, November 18, 2015 at 1:00 PM CST.
Registration is now open.