GWL.PR.O Particulars

This is very old news indeed, but should be recorded for easy access to the information.

There’s no prospectus for the issue, since it came into being via the

OFFER TO PURCHASE
all of the outstanding Non-Cumulative Preferred Shares, Series L
of
THE GREAT-WEST LIFE ASSURANCE COMPANY
not already held directly or indirectly by Great-West Lifeco Inc.
in exchange, at the option of the holder, for
$23.00 cash
or
One Non-Cumulative Preferred Share, Series O (a “Series O Share”) of
The Great-West Life Assurance Company (“GWL”)
for each Non-Cumulative Preferred Share, Series L (a “Series L Share”) of GWL

This document is available on SEDAR, as “The Great-West Life Assurance Company Dec 14 2000 Issuer bid circular – English
PDF 314K”

Series O Dividends

Until October 31, 2010 (the “Fixed Dividend Rate Period”), the holders of the Series O Shares will be entitled to receive quarterly non-cumulative cash dividends, as and when declared by the board of directors of GWL, payable on the last day of January, April, July and October in each year at a rate equal to $0.346875 per share to initially yield 5.55%. The first such dividend, if declared, will be payable on January 31, 2001 in an amount equal to $0.346875 per share.

From October 31, 2010 (the “Floating Dividend Rate Period”), the holders of the Series O Shares will be entitled to receive non-cumulative cash dividends, as and when declared by the board of directors of GWL, payable on the last day of January, April, July and October in each year at a floating rate in respect of each quarterly dividend period equal to one quarter of the greater of (a) 4.75% and (b) 80% of Prime.

Series O Redemption

The Series O Shares will not be redeemable prior to October 31, 2010. Subject to the provisions described under “Restrictions on Dividends and Retirement of Series O Shares” and “Regulatory Approvals”, GWL may redeem on October 31, 2010 and on the last day of every successive period of five years plus one day thereafter, all or any part of the then outstanding Series O Shares. Such redemption may be made upon payment in cash of the amount of $25.00 per share together with an amount equal to all declared and unpaid dividends thereon to but excluding the date on which such shares are redeemed. GWL will provide not less than 30 nor more than 60 calendar days’ notice of such redemption to each holder of Series O Shares to be redeemed.

On October 31, 2010 and every five years thereafter, Series O is exchangeable at the holder’s option (subject to the usual restrictions on shares left outstanding) to and from Series P.

Series P Dividends

The holders of the Series P Shares will be entitled to receive fixed non-cumulative preferential cash dividends, as and when declared by the Board of Directors of GWL, in an amount per share per annum determined by the Board of Directors of GWL payable quarterly on the last day of January, April, July and October in each year. The first such dividend, if declared, will be payable on January 31, 2011.

The annual dividend rate determined by the Board of Directors of GWL in respect of a Dividend Period will not be less than 85% of the Government of Canada Yield prevailing at the time the dividend rate is set.

Series P Redemption

The Series P Shares will not be redeemable prior to November 1, 2015. Subject to the provisions described under “Restrictions on Dividends and Retirement of Series P Shares” and “Regulatory Approvals”, GWL may redeem on November 1, 2015 and on the last day of every successive period of five years plus one day thereafter, all or any part of, the outstanding Series P Shares. Such redemption may be made upon payment in cash in the amount of $25.00 for each Series P Share together with an amount equal to all declared and unpaid dividends thereon to but excluding the date on which such shares are redeemed.

GWL.PR.O is not currently listed on PrefInfo. When I get around to updating the information, it will be summarized as:

  • GWL.PR.O

  • Great-West Life Pr O
  • Great-West Life Assurance Co Pr Ser ‘O’ (The)
1.3875
  • Floating Rate Start Date : 2010-10-31
  • Floating Rate Index ID : Canada Prime
  • FR Formula : Greater of 80% of index and Flat Rate 4.75% (#80)
  • Redemption 2010-10-31 2010-10-31 25.000000
  • Redemption 2015-10-31 2015-10-31 25.000000
  • None
  • Payments are Dividends : Yes
  • Cumulative Dividends : No
  • SplitShare Corp : No

7 Responses to “GWL.PR.O Particulars”

  1. […] PrefBlog Canadian Preferred Shares – Data and Discussion « GWL.PR.O Particulars […]

  2. GAndreone says:

    Since the series L prefs were purchased via an Offer of $23 versus a redemption of $25 what happened to the shares that were neither swapped or tendered? Were they left orphaned or did GWL exercise its option to redeem them at $25?

  3. jiHymas says:

    The Purchase Offer threatened compulsory acquisition if they got more than 90% but less than 100%. A Press Release 2001-1-5 announced they got 76.8%.

    Just under 2.1-million of them remained outstanding

    GWL’s Annual Financial Statements for 2008 carry the note:

    During 2007 the Company redeemed the Series L, 5.20% Non-Cumulative preferred shares at a price of $25 per share.

  4. GAndreone says:

    The Offer is interesting reading!

    New rules for Preferred Shares.

    1) When the share price is dropping watch out for the Issuer’s Bidco buying them at lower and lower prices. It is the issuer’s best interest to let the price slide if they are intending to buy them up via a separate numbered company.

    2) The redemption price can be less then the Set Price and is negotiable as long as the issuer can convince the holders that the lower price is Fair!

    3) Perpetual means 5 – 10.2 years or maybe longer for PDs. Where 10.2 years is the average life of a Perpetual (http://www.prefblog.com/?p=10317#comments). Does calculating yield out to 30 years make sense?

    4)Gold bullion maybe the only monetary instrument that is Really Perpetual!

  5. […] PerpetualDiscount due to price declines, the PerpetualPremium index has only one remaining member: GWL.PR.O, a chimerical issue which can sometimes be a straight, sometimes a FixedFloater, depending on where […]

  6. […] index has finally become an empty set with the volume-based move to Scraps index of GWL.PR.O, a chimerical issue which can sometimes be a straight, sometimes a FixedFloater, depending on where […]

  7. […] was last mentioned on PrefBlog when I discussed its particulars. GWL.PR.O is tracked by HIMIPref™ and is currently a member of the PerpetualPremium […]

Leave a Reply

You must be logged in to post a comment.