Published on 10/3/2012 in the Prospect News Canadian Bonds Daily.
New Issue: Great-West Lifeco sells C$150 million of 4.8% preferreds
By Cristal Cody
Prospect News, Oct. 3 - Great-West Lifeco Inc. said it priced C$150 million, or 6 million shares, of noncumulative first preferred shares on Wednesday to yield 4.8%.
The series R preferreds (DBRS: Pfd-1) priced at C$25 each.
BMO Capital Markets Corp., RBC Capital Markets LLC and Scotia Capital Inc. were the lead managers.
The deal includes an over-allotment option for C$50 million, or 2 million preferreds.
The preferreds become redeemable at C$26.00 each beginning Dec. 31, 2017. The redemption price steps down to C$25.75 on Dec. 31, 2018, to C$25.50 on Dec. 31, 2019, to C$25.25 on Dec. 31, 2020 and to C$25.00 on Dec. 31, 2021.
Proceeds from the offering will be used for general corporate purposes and to supplement the company's liquidity position.
Winnipeg, Man.-based Great-West Lifeco operates life insurance, health insurance, retirement and investment services, asset management and reinsurance businesses.
| Issuer: | Great-West Lifeco Inc.
|
| Amount: | C$150 million, 6 million shares
|
| Greenshoe: | C$50 million, 2 million shares
|
| Securities: | Noncumulative first preferred shares
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| Bookrunners: | BMO Capital Markets Corp., RBC Capital Markets LLC and Scotia Capital Inc.
|
| Dividend: | 4.8%
|
| Price: | C$25 per share
|
| Call feature: | On and after Dec. 31, 2017 for C$26.00 each if redeemed prior to Dec. 31, 2018, C$25.75 each if redeemed on or after Dec. 31, 2018 but prior to Dec. 31, 2019, C$25.50 each if redeemed on or after Dec. 31, 2019 but prior to Dec. 31, 2020, C$25.25 each if redeemed on or after Dec. 31, 2020 but prior to Dec. 31, 2021 and C$25.00 each if redeemed on or after Dec. 31, 2021
|
| Pricing date: | Oct. 3
|
| Settlement date: | Oct. 11
|
| Rating: | DBRS: Pfd-1
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| Distribution: | Canada
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