By Cristal Cody
Tupelo, Miss., May 13 - Industrial Alliance Insurance and Financial Services Inc. sold C$250 million of 2.8% 10-year fixed-to-floating subordinated debentures at 99.949 to yield 2.811% on Tuesday, according to an informed source.
The debentures due May 16, 2024 (DBRS: A) priced with a spread of 117 basis points over the Government of Canada benchmark.
TD Securities Inc. and RBC Capital Markets LLC were the lead managers.
The debentures will reset to a floating rate on May 16, 2019.
Industrial Alliance Insurance and Financial Services may redeem the debentures in whole or in part on or after May 16, 2019.
Proceeds from the deal will be used for general corporate purposes, including the June 30 redemption at par of C$150 million of outstanding 5.13% subordinated debentures due June 30, 2019.
The life and health insurance company is based in Quebec City.
| Issuer: | Industrial Alliance Insurance and Financial Services Inc.
|
| Amount: | C$250 million
|
| Maturity: | May 16, 2024
|
| Securities: | Fixed-to-floating subordinated debentures
|
| Bookrunners: | TD Securities Inc. and RBC Capital Markets LLC
|
| Coupon: | 2.8%
|
| Price: | 99.949
|
| Yield: | 2.811%
|
| Spread: | 117 bps over Government of Canada benchmark
|
| Call feature: | May 16, 2019
|
| Pricing date: | May 13
|
| Settlement date: | May 16
|
| Ratings: DBRS: A
|
| Distribution: | Canada
|
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