By Wendy Van Sickle
Columbus, Ohio, Aug. 9 – Great-West Lifeco Inc. priced C$1.5 billion of 3.6% limited resource capital notes, series 1, with a maturity date of Dec. 31, 2081, according to a news release.
Interest will be fixed until Dec. 31, 2026 and then will reset every five years at a rate equal to the Government of Canada yield plus 264.1 basis points.
The issuer is also issuing, with the notes offering, 1.5 million non-cumulative five-year rate reset first preferred shares, series U.
RBC Capital Markets and Scotiabank and BMO Capital Markets were the leads.
The notes can be redeemed semiannually starting in 2026, from a period from Nov. 30 to Dec. 31. The redemption period occurs every five years.
Proceeds will be used to partially fund the previously announced acquisition of Prudential Financial, Inc.'s full-service retirement business by Lifeco's subsidiary, Empower Retirement.
The insurance and financial services holding company is based in Winnipeg, Man.
| Issuer: | Great-West Lifeco Inc.
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| Amount: | C$1.5 billion
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| Description: | Limited resource capital notes, series | 1
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| Maturity: | Dec. 31, 2081
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| Bookrunners: | RBC Capital Markets and Scotiabank
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| Coupon: | 3.6% until Dec. 31, 2026, then will reset every five years at Government of Canada yield plus 264.1 bps
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| Call: | Callable starting Nov. 30, 2026 and every five years thereafter during a callable period from Nov. 30 to Dec. 31
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| Trade date: | Aug. 9
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| Settlement date: | Aug. 16
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| Distribution: | Canada
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