Great-West Lifeco seeks consents to amend 6.67% debentures due 2033

By Susanna Moon

Chicago, Oct. 16 - Great-West Lifeco Inc. said it will seek consents from holders of its C$400 million 6.67% debentures due March 21, 2033 to amend the notes.

The consent will eliminate the replacement capital covenants and related provisions to some of Great-West Lifeco's preferred shares, the 5.691% subordinated debentures due June 21, 2067 issued by Great-West Lifeco Finance (Delaware) LP and the 7.127% subordinated debentures due June 26, 2068 issued by Great-West Lifeco Finance (Delaware) LP II, according to a company press release.

Great-West Lifeco said it is seeking to remove the replacement capital covenants for more flexibility to manage its capital structure.

Removal of the replacement capital covenants would allow Great-West Lifeco to be responsive to credit rating agency considerations and emerging regulatory capital developments, the company said.

The proposed changes do not imply that Great-West Lifeco intends to take any future action with respect to the redemption of any of the securities currently subject to the replacement capital covenants, the release noted.

Great-West Lifeco will solicit consents from holders of record as of 5 p.m. ET on Oct. 11.

The proposed amendments require the consent of holders of at least 66 2/3% of the outstanding principal amount of the 2033 notes.

Great-West Lifeco said it will pay a consent fee of $12.50 in cash for each $1,000 principal amount.

The solicitation will expire at 5 p.m. ET on Oct. 30.

RBC Dominion Securities Inc. (416 842-6311) is the solicitation agent. Georgeson Shareholder Communications Canada Inc. (askus@georgeson.com) is the information agent. Computershare Trust Company of Canada is the tabulation agent.

Winnipeg, Man.-based Great-West Lifeco operates life insurance, health insurance, retirement and investment services, asset management and reinsurance businesses.

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