By Taylor Fox
New York, Oct. 9 – Foresters Financial said its parent company, the Independent Order of Foresters, plans to issue C$250 million of series 2020-1 subordinated unsecured 2.885% fixed/floating debentures due Oct. 15, 2035, according to a news release.
The debentures will bear interest at a fixed annual rate of 2.885% for the first 10 years, payable semiannually, and a variable rate equal to three-month CDOR, 177 basis points for the last five years, payable quarterly.
The proceeds will be used for general corporate purposes including investments in subsidiaries.
The offering is expected to close on Oct. 15.
The debentures will be sold on an agency basis by a syndicate of dealers that will be led by BMO Nesbitt Burns Inc. and RBC Dominion Securities Inc. and will include Goldman Sachs Canada Inc., National Bank Financial Inc., Scotia Capital Inc. and CIBC World Markets Inc.
Foresters Financial provides financial services to individuals and families and is based in Toronto.
| Issuer: | Independent Order of Foresters
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| Issue: | Series 2020-1 subordinated unsecured fixed/floating debentures
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| Amount: | C$250 million
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| Maturity: | Oct. 15, 2035
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| Lead agents: | BMO Nesbitt Burns Inc. and RBC Dominion Securities Inc.
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| Coupon: | 2.885% for 10 years, then CDOR plus 177 bps
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| Pricing date: | Oct. 9
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| Distribution: | Private placement
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