New York, Oct. 17 - Equitable Group Inc. sold C$65 million of 5.4% debentures due Oct. 23, 2017, according to a company announcements.
TD Securities Inc. and RBC Dominion Securities Inc. were lead managers for the offering, which was sold in Canada as a private placement.
Proceeds will be used to acquire series 10 Trustco debentures from Equitable's subsidiary, Equitable Trust Co. The series 10 debentures are expected to qualify as tier 2B capital.
Equitable Trust will use the proceeds to redeem existing subordinated debt.
Equitable Group will use the proceeds it will in turn receive from the redemption of some of Equitable Trust's debentures to repay a C$12.5 million term loan before Jan. 31, 2013.
"This offering is a proactive move, made from a position of obvious strength, that allows Equitable to secure capital in anticipation of upcoming maturities and in advance of new rules for capital instruments coming into effect for most Canadian financial institutions next year," said Andrew Moor, president and chief executive officer of Equitable Group, in a news release "I'm pleased that the interest rate on this debt is lower than the rate on the debt that we intend to redeem over the next few years."
Equitable is a Toronto-based mortgage lender.
| Issuer: | Equitable Group Inc.
|
| Issue: | Debentures
|
| Amount: | C$65 million
|
| Maturity: | Oct. 23, 2017
|
| Coupon: | 5.4%
|
| Managers: | TD Securities Inc., RBC Dominion Securities Inc. (joint leads), GMP Securities LP , BMO Nesbitt Burns Inc. and CIBC World Markets Inc.
|
| Announcement date: | Oct. 17
|
| Distribution: | Private placement in Canada
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