By Cristal Cody
Prospect News, June 19 - Industrial Alliance Insurance and Financial Services Inc. announced on Tuesday that it sold C$100 million in an add-on to its non-cumulative rate reset class A preferred shares to yield 4.3% for the initial period up to June 30, 2017.
The company sold 4 million shares of the series G five-year preferred stock (DBRS: Pfd-2) at C$25.00 per share.
BMO Capital Markets Corp. was the lead manager.
On June 30, 2017 and on June 30 every five years thereafter, the dividend rate will reset to the then current five-year Government of Canada bond yield plus 285 bps.
The shares are callable on June 30, 2017 and on June 30 every five years at C$25.00 per preferred plus accrued dividends.
The sale is in addition to the C$150 million, or 6 million shares, the company priced with an initial dividend rate of 4.3% on May 24 and settled on June 1.
Proceeds will be used for general corporate and capital planning purposes and will be added to Industrial Alliance's capital base.
The life and health insurance company is based in Quebec City.
| Issuer: | Industrial Alliance Insurance and Financial Services Inc.
|
| Amount: | C$100 million reopening, or 4 million shares
|
| Maturity: | June 30, 2017 (initial maturity)
|
| Securities: | Non-cumulative rate reset preferred shares
|
| Bookrunner: | BMO Capital Markets Corp.
|
| Dividend: | 4.3%, resets June 30, 2017 and every five years thereafter at 285 bps over Government of Canada bond yield
|
| Price: | C$25.00 per share
|
| Call feature: | June 30, 2017 and every five years thereafter
|
| Pricing date: | June 19
|
| Settlement date: | June 28
|
| Rating: | DBRS: Pfd-2
|
| Distribution: | Canada
|
| Total: | C$250 million
|
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