By Rebecca Melvin
Concord, N.H., Oct. 1 – Great-West Lifeco Inc. priced C$200 million 4.5% $25-par first preferred shares on a bought deal basis, according to a company news release on Friday.
BMO Capital Markets led the underwriting syndicate of initial purchasers including RBC Capital Markets, Scotiabank, CIBC Capital Markets and TD Securities.
The non-cumulative, series Y shares are non-callable until Dec. 31, 2026. On or after Dec. 31, 2026, they are callable for up to a year at C$26.00 per share. Subsequently, they are callable at C$25.75 if called after Dec. 31, 2027 and prior to Dec. 31, 2028, at C$25.50 per share if called after Dec. 31, 2028 and prior to Dec. 31, 2029, at C$25.25 if called after Dec. 31, 2029 and prior to Dec. 31, 2030, and at C$25.00 per share if redeemed after Dec. 31, 2029 and prior to Dec. 31, 2030. The payments will be made together with declared dividends.
The proceeds of the offering will be used for general corporate purposes.
The insurance and financial services holding company is based in Winnipeg, Man.
| Issuer: | Great-West Lifeco Inc.
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| Issue: | $25-par first preferred shares
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| Amount: | C$200 million
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| Maturity: | Perpetual
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| Bookrunners: | BMO Capital Markets, RBC Capital Markets, Scotiabank, CIBC Capital Markets and TD Securities
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| Dividend: | 4.5%
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| Call: | Callable starting Dec. 31, 2026 at C$26.00 per share, and every year thereafter until Dec. 31, 2030 at a price that steps down C$0.25 every year
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| Trade date: | Oct. 1
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| Settlement date: | Oct. 8
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| Distribution: | Regulation S
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