Ms. Marlene Klassen reports
GREAT-WEST LIFECO PREFERRED SHARE ISSUE
Great-West Lifeco Inc. has entered into an agreement with a syndicate of
underwriters co-led by BMO Capital Markets, RBC Capital Markets and
Scotiabank, under which the underwriters have agreed to buy, on a
bought deal basis, six million non-cumulative first preferred shares,
Series Q, from Lifeco for sale to the public at
a price of $25 per Series Q share, representing aggregate gross
proceeds of $150-million.
Lifeco has granted the underwriters an underwriters' option to purchase
an additional two million Series Q shares at the same offering price.
Should the underwriters' option be fully exercised, the total gross
proceeds of the Series Q shares offering will be $200-million.
The Series Q shares will yield 5.15 per cent per annum, payable quarterly, as
and when declared by the board of directors of the company. The Series
Q shares will not be redeemable prior to Sept. 30, 2017. On or
after Sept. 30, 2017, the company may, on not less than 30 nor more
than 60 days of notice, redeem the Series Q shares in whole or in part,
at the company's option, by the payment in cash of $26 per Series Q
share if redeemed prior to Sept. 30, 2018, of $25.75 per Series Q
share if redeemed on or after Sept. 30, 2018, but prior to Sept. 30, 2019, of $25.50 per Series Q share if redeemed on or after
Sept. 30, 2019, but prior to Sept. 30, 2020, of $25.25 per
Series Q share if redeemed on or after Sept. 30, 2020, but prior to
Sept. 30, 2021, and of $25 per Series Q share if redeemed on or
after Sept. 30, 2021, in each case together with all declared and
unpaid dividends up to but excluding the date fixed for redemption.
The Series Q shares offering is expected to close on July 6, 2012. The
net proceeds will be used for general corporate purposes and to augment
Lifeco's current liquidity position.
We seek Safe Harbor.
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