/NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE
UNITED STATES./
Readers are referred to the cautionary note regarding Forward-Looking
Information at the end of this release.
WINNIPEG, June 28, 2012 /CNW/ - Great-West Lifeco Inc. ("Lifeco" or the
"Company") has today 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, 6,000,000 Non-Cumulative First Preferred Shares,
Series Q (the "Series Q Shares") from Lifeco for sale to the public at
a price of $25.00 per Series Q Share, representing aggregate gross
proceeds of $150 million.
Lifeco has granted the underwriters an underwriters' option to purchase
an additional 2,000,000 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 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 September 30, 2017. On or
after September 30, 2017, the Company may, on not less than 30 nor more
than 60 days' notice, redeem the Series Q Shares in whole or in part,
at the Company's option, by the payment in cash of $26.00 per Series Q
Share if redeemed prior to September 30, 2018, of $25.75 per Series Q
Share if redeemed on or after September 30, 2018 but prior to September
30, 2019, of $25.50 per Series Q Share if redeemed on or after
September 30, 2019 but prior to September 30, 2020, of $25.25 per
Series Q Share if redeemed on or after September 30, 2020 but prior to
September 30, 2021 and of $25.00 per Series Q Share if redeemed on or
after September 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.
The securities offered have not been and will not be registered under
the U.S. Securities Act of 1933, as amended, and may not be offered or
sold in the United States absent registration or an applicable
exemption from the registration requirements. This press release shall
not constitute an offer to sell or the solicitation of an offer to buy
nor shall there be any sale of the securities in any State in which
such offer, solicitation or sale would be unlawful.
Great-West Lifeco Inc. (TSX:GWO) is an international financial services
holding company with interests in life insurance, health insurance,
retirement and investment services, asset management and reinsurance
businesses. Great-West Lifeco has operations in Canada, the United
States, Europe and Asia through The Great-West Life Assurance Company,
London Life Insurance Company, The Canada Life Assurance Company,
Great-West Life & Annuity Insurance Company and Putnam Investments,
LLC. Great-West Lifeco and its companies have $523 billion* in assets
under administration and are members of the Power Financial Corporation
group of companies.
* As at March 31, 2012
Cautionary note regarding Forward-Looking Information
This release contains some forward-looking statements about the Company,
including its business operations, strategy and expected financial
performance and condition. Forward-looking statements include
statements that are predictive in nature, depend upon or refer to
future events or conditions, or include words such as "expects",
"anticipates", "intends", "plans", "believes", "estimates" and similar
expressions or negative versions thereof. In addition, any statement
that may be made concerning future financial performance (including
revenues, earnings or growth rates), ongoing business strategies or
prospects, and possible future actions by the Company including
statements made with respect to the expected benefits of acquisitions
and divestitures are also forward-looking statements. Forward-looking
statements are based on expectations and projections about future
events that were current at the time of the statements and are
inherently subject to, among other things, risks, uncertainties and
assumptions about the Company, economic factors and the financial
services industry generally, including the insurance and mutual fund
industries. They are not guarantees of future performance, and actual
events and results could differ materially from those expressed or
implied by forward-looking statements due to, but not limited to,
important factors such as sales levels, premium income, fee income,
expense levels, mortality experience, morbidity experience, policy
lapse rates and taxes, as well as general economic, political and
market factors in North America and internationally, interest and
foreign exchange rates, global equity and capital markets, business
competition, technological change, changes in government regulations,
changes in accounting policies and the effect of applying future
accounting policy changes, unexpected judicial or regulatory
proceedings, catastrophic events, and the Company's ability to complete
strategic transactions and integrate acquisitions. The reader is
cautioned that the foregoing list of important factors is not
exhaustive, and there may be other factors, including factors set out
under "Risk Management and Control Practices" in the Company's Annual
Management's Discussion and Analysis and any listed in other filings
with securities regulators, which are available for review at www.sedar.com. The reader is also cautioned to consider these and other factors
carefully and to not place undue reliance on forward-looking
statements. Other than as specifically required by applicable law, the
Company has no intention to update any forward-looking statements
whether as a result of new information, future events or otherwise.
Cautionary note regarding Non-IFRS Financial Measures
This release contains some non-IFRS financial measures. Terms by which
non-IFRS financial measures are identified include but are not limited
to "operating earnings", "constant currency basis", "premiums and
deposits", "sales", and other similar expressions. Non-IFRS financial
measures are used to provide management and investors with additional
measures of performance. However, non-IFRS financial measures do not
have standard meanings prescribed by IFRS and are not directly
comparable to similar measures used by other companies. Please refer to
the appropriate reconciliations of these non-IFRS financial measures to
measures prescribed by IFRS.
<p> Marlene Klassen, APR<br/> Assistant Vice-President, Communication Services<br/> 204.946.7705 </p>