Empire Life greenshoe lifts 5.75% preferreds to C$149.5 million

By Susanna Moon

Chicago, March 1 – Empire Life Insurance Co. said underwriters fully exercised the C$19.5 million over-allotment option on its non-cumulative rate reset series 1 preferred shares with a 5.75% annual dividend for the initial period through April 17, 2021.

This brings the total deal size to C$149.5 million, according to a company announcement.

As reported Jan. 25, Empire priced C$130 million of the preferreds, selling 5.2 million shares of the preferred stock at C$25.00 per share, with an over-allotment option of 780,000 shares.

Scotia Capital Inc., CIBC World Markets Inc. and TD Securities Inc. were the lead underwriters.

The dividend will reset every five years at a rate equal to the five-year Government of Canada bond yield plus 499 basis points.

Series 1 preferred shareholders will have the right to convert their shares into series 2 non-cumulative floating-rate preferred shares on April 17, 2021 and on April 17 every five years after that.

Holders will receive non-cumulative quarterly floating dividends at a rate equal to the three-month Government of Canada treasury bill yield plus 499 bps.

Proceeds will be used for regulatory capital and for general corporate purposes.

The Kingston, Ont.-based individual and group life and health insurance and investment company is a subsidiary of E-L Financial Corp. Ltd.

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