By Cristal Cody
Tupelo, Miss., May 24 - Empire Life Insurance Co. sold C$300 million of subordinated debentures at par to yield 2.87% until May 31, 2018 in a private placement on Friday, according to an informed source.
The debentures (DBRS: A) priced at a spread of 147 basis points over the Canadian bond curve.
The coupon on the fixed-to-floating-rate debentures will reset in 2018 at a rate equal to the three-month bankers' acceptance rate plus 105 bps through the final maturity of May 31, 2023.
RBC Dominion Securities Inc. and TD Securities Inc. were the joint lead managers of the deal. BMO Nesbit Burns Inc., CIBC World Markets Inc., National Bank Financial Inc. and Scotia Capital Inc. were co-managers.
The notes are redeemable on May 31, 2018.
The Kingston, Ont.-based life insurance company plans to use the proceeds for regulatory capital purposes and for general corporate purposes.
| Issuer: | Empire Life Insurance Co.
|
| Amount: | C$300 million
|
| Maturity: | May 31, 2023
|
| Securities: | Fixed-to-floating-rate subordinated debentures
|
| Bookrunners: | RBC Dominion Securities Inc. and TD Securities Inc.
|
| Co-managers: | BMO Nesbit Burns Inc., CIBC World Markets Inc., National Bank Financial Inc. and Scotia Capital Inc.
|
| Coupon: | Initially 2.87%; will reset to three-month bankers' acceptance rate plus 105 bps on May 31, 2018
|
| Price: | Par
|
| Yield: | 2.87% until May 31, 2018
|
| Spread: | 147 bps over Canada bond curve
|
| Call feature: | May 31, 2018
|
| Pricing date: | May 24
|
| Settlement date: | May 31
|
| Rating: | DBRS: A
|
| Distribution: | Canada private placement
|
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