By Cristal Cody
Tupelo, Miss., Feb. 18 – Industrial Alliance Insurance and Financial Services Inc. sold C$250 million of 2.64% 12-year fixed/floating-rate subordinated debentures at 99.975 to yield 2.644% on Thursday, according to the company and a market source.
The debentures due Feb. 23, 2027 (/A/DBRS: A) priced with a spread of 156 basis points over the interpolated Government of Canada bond curve.
TD Securities Inc. was the bookrunner.
The debentures will reset to a floating rate on Feb. 23, 2022.
Industrial Alliance Insurance and Financial Services may redeem the debentures in whole or in part on or after Feb. 23, 2022 at par.
Proceeds from the deal will be used for general corporate purposes, including the March 31 redemption of 4 million shares of 5.9% series F noncumulative class A preferred stock.
Industrial Alliance is a life and health insurance company based in Quebec City.
| Issuer: | Industrial Alliance Insurance and Financial Services Inc.
|
| Securities: | Fixed/floating-rate subordinated debentures
|
| Amount: | C$250 million
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| Maturity: | Feb. 23, 2027
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| Interest reset date: | Feb. 23, 2022
|
| Bookrunners: | TD Securities Inc.
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| Coupon: | 2.64%
|
| Price: | 99.975
|
| Yield: | 2.644%
|
| Spread: | 156 bps over interpolated Government of Canada bond curve
|
| Call feature: | On or after Feb. 23, 2022 at par
|
| Pricing date: | Feb. 18
|
| Settlement date: | Feb. 23
|
| Ratings: Standard & Poor’s: A
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| DBRS: A
|
| Distribution: | Canada, Regulation S
|
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