By Cristal Cody
Prospect News, Nov. 3 - Sun Life Financial Inc. announced on Thursday that it sold C$250 million of preferred shares with a 4.25% dividend for the initial period ending Dec. 31, 2016.
The company sold the series 12R class A non-cumulative rate reset preferred shares (Baa2/BBB+//DBRS: Pfd-1) at C$25.00 per share.
Scotia Capital Inc., CIBC World Markets Inc. and TD Securities Inc. were the managers.
The deal includes an over-allotment option of an additional C$50 million of preferred shares.
The shares may be redeemed on Dec. 31, 2016 and on Dec. 31 every five years thereafter.
Sun Life has applied to list the preferred stock on the Toronto Stock Exchange.
Proceeds from the sale will be used for general corporate purposes.
Sun Life Financial is a Toronto-based leading international financial services organization.
| Issuer: | Sun Life Financial Inc.
|
| Amount: | C$250 million
|
| Greenshoe: | C$50 million
|
| Maturity: | Dec. 31, 2016
|
| Securities: | Non-cumulative rate reset preferred shares
|
| Bookrunners: | Scotia Capital Inc., CIBC World Markets Inc., TD Securities Inc.
|
| Dividend: | 4.25%
|
| Price: | C$25.00 per share
|
| Call option: | Dec. 31, 2016 and every five years thereafter
|
| Pricing date: | Nov. 3
|
| Settlement date: | Nov. 10
|
| Ratings: | Moody's: Baa2
|
| Standard & Poor's: BBB+
|
| DBRS: Pfd-1
|
| Distribution: | Canada
|
| Expected listing: | Toronto Stock Exchange
|
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