By Wendy Van Sickle
Columbus, Ohio, Jan. 10 – Empire Life Insurance Co. priced C$200 million of 5.503% 10-year fixed-to-floating rate subordinated notes (DBRS: A) on Tuesday, according to a press release.
Interest accrues at 5.503% per year for the first five years. From then onwards, the notes will bear interest at a floating rate equal to daily compounded CORRA plus 226 basis points.
The notes will be sold by a syndicate of dealers led by Scotia Capital Inc., CIBC World Markets Inc. and RBC Dominion Securities Inc. and including TD Securities Inc., BMO Nesbitt Burns Inc., CIBC World Markets Inc. and National Bank Financial Inc.
Proceeds will be used for regulatory capital and general corporate purposes, which may include debt redemptions.
The Kingston, Ont.-based individual and group life and health insurance and investment company is a subsidiary of E-L Financial Corp. Ltd.
| Issuer: | Empire Life Insurance Co.
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| Amount: | C$200 million
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| Issue: | Fixed-to-floating rate subordinated notes
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| Maturity: | Jan. 13, 2033
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| Bookrunners: | RBC Dominion Securities Inc. and Scotia Capital Inc. (lead) and TD Securities Inc., BMO Nesbitt Burns Inc., CIBC World Markets Inc. and National Bank Financial Inc.
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| Coupon: | 5.503% for first five years, then at daily compounded CORRA plus 226 bps
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| Pricing date: | Jan. 10
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| Settlement date: | Jan. 13
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| Rating: | DBRS: A (low)
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| Distribution: | Canada private placement
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