Sun Life Financial has announced:
the successful completion of a Canadian public offering of $300 million of Class A Non-Cumulative Rate Reset Preferred Shares Series 12R (the “Series 12R Shares”) at a price of $25.00 per share and yielding 4.25 per cent annually. The offering, initially for $250 million of Series 12R Shares, was increased to $300 million following exercise by the underwriting syndicate, co-led by Scotia Capital Inc., CIBC and TD Securities Inc., of an option to purchase an additional $50 million of Series 12R Shares.
The Series 12R Shares were issued under a prospectus supplement dated November 3, 2011, which was issued pursuant to a short form base shelf prospectus dated April 12, 2011. Copies of those documents are available on the SEDAR website for Sun Life Financial Inc. at www.sedar.com. The Series 12R Shares are listed on the Toronto Stock Exchange under the ticker symbol SLF.PR.I.
SLF.PR.I is a FixedReset, 4.25%+273, announced November 3.
The issue traded 398,680 shares today in a range of 24.60-90 before closing at 24.55-60, 10×4. The issue will be tracked by HIMIPref™ and has been assigned to the FixedReset index. In accordance with my views on DeemedRetractibles, a hardMaturity entry has been added to the call schedule, on the assumption that regulatory changes applied to banks with respect to Tier 1 Capital will be extended to apply to insurers and insurance holding companies.
Vital statistics are:
Maturity Type : Hard Maturity
Maturity Date : 2022-12-31
Maturity Price : 25.00
Evaluated at bid price : 24.55
Bid-YTW : 4.41 %