14:41:20 EDT Thu 28 Mar 2024
Enter Symbol
or Name
USA
CA



Industrial Alliance Insurance and Financial S
Symbol IAG
Shares Issued 102,592,942
Close 2016-09-13 C$ 45.98
Market Cap C$ 4,717,223,473
Recent Sedar Documents

Industrial Alliance arranges $400M debenture offering

2016-09-13 18:46 ET - News Release

Ms. Grace Pollock reports

INDUSTRIAL ALLIANCE ANNOUNCES AN OFFERING OF $400 MILLION OF 3.30% FIXED/FLOATING SUBORDINATED DEBENTURES

Industrial Alliance Insurance and Financial Services Inc. has arranged an offering of $400-million principal amount of 3.30-per-cent fixed/floating subordinated debentures due Sept. 15, 2028.

The debentures will mature on Sept. 15, 2028. Interest on the debentures at the rate of 3.30 per cent per year will be payable in arrears in equal semi-annual instalments on Sept. 15 and March 15, in each year, commencing on Sept. 15, 2017, and continuing until Sept. 15, 2023, with a short first interest payment in the amount of $6,509,589.04 payable on March 15, 2017. After Sept. 15, 2023, interest on the debentures will be payable at a rate per year equal to the three-month bankers' acceptance rate (CDOR) plus 2.14 per cent, payable quarterly in arrears on the 15th day of each of March, June, September and December in each year, commencing on Dec. 15, 2023.

The offering is being done on a best-efforts agency basis by a syndicate of agents led by TD Securities Inc. as sole lead and bookrunner and consisting of CIBC World Markets Inc., RBC Dominion Securities Inc., BMO Nesbitt Burns Inc., Industrial Alliance Securities Inc., National Bank Financial Inc. and Scotia Capital Inc.

The offering is made under the short-form base shelf prospectus dated April 16, 2015, which provides for the issue of up to $2-billion principal amount of securities. Complete details of the offering are set out in the prospectus supplement dated Sept. 13, 2016, which will be filed with the Canadian securities regulatory authorities and will be available on SEDAR and on the company's website.

The offering is expected to close on or about Sept. 16, 2016. The net proceeds will be added to the company's general funds and will be used for general corporate purposes (including, subject to the prior approval of the Autorite des marches financiers, the redemption of Industrial Alliance's outstanding 4.75-per-cent subordinated debentures due Dec. 14, 2021, which Industrial Alliance currently intends to effect on Dec. 14, 2016).

On a pro forma basis, after giving effect to the offering and the subordinated debenture redemption, the company estimates that, as at June 30, 2016: (i) its debt ratio would increase from 16.5 per cent to 18.9 per cent if only its outstanding debentures are considered "debt"; (ii) its debt ratio would increase from 23.8 per cent to 26.0 per cent if its outstanding debentures and preferred shares are considered "debt"; and (iii) its solvency ratio would increase by six percentage points to 205 per cent.

About Industrial Alliance

Industrial Alliance is one of the four largest life and health insurance companies in Canada and one of the largest publicly traded companies in the country.

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