By Cristal Cody
Tupelo, Miss., May 13 - Great-West Lifeco Inc. sold an upsized C$200 million of noncumulative first preferred stock (//DBRS: Pfd-1) that yield a 5.25% annual dividend, according to a company release on Tuesday.
The company priced 8 million of the series S preferreds at C$25 each.
The deal was upsized from C$150 million, or 6 million preferreds, upon exercise of the over-allotment option.
BMO Capital Markets Corp. and Scotia Capital Inc. were the lead managers.
The preferred stock is not redeemable prior to June 30, 2019.
The company may redeem the preferred shares for cash on and after June 30, 2019 and prior to June 30, 2020 at C$26.00 per share; on or after June 30, 2020 and before June 30, 2021 at C$25.75 per share; on or after June 30, 2021 and before June 30, 2022 at C$25.50 per share; on or after June 30, 2022 and before June 30, 2023 at C$25.25 per share and on or after June 30, 2023 at C$25.00 per share.
The proceeds from the deal will be used for general corporate purposes and to augment Lifeco's current liquidity position.
Winnipeg, Manitoba-based Great-West Lifeco is a financial services holding company with operations in life insurance, health insurance, retirement and investment services, asset management and reinsurance businesses.
| Issuer: | Great-West Lifeco Inc.
|
| Amount: | C$200 million (8 million shares)
|
| Securities: | Series S noncumulative first preferred stock
|
| Bookrunners: | BMO Capital Markets Corp. and Scotia Capital Inc.
|
| Price: | C$25.00 per share
|
| Dividend: | 5.25%
|
| Call feature: | Not redeemable prior to June 30, 2019; C$26.00 per share prior to June 30, 2020; C$25.75 per share on or after June 30, 2020 but prior to June 30, 2021; C$25.50 per share on or after June 30, 2021 but prior to June 30, 2022; C$25.25 per share on or after June 30, 2022 but prior to June 30, 2023; and C$25.00 per share on or after June 30, 2023
|
| Pricing date: | May 13
|
| Settlement date: | May 22
|
| Rating: | DBRS: Pfd-1
|
| Distribution: | Canada
|
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