IAG.PR.E To Be Redeemed

Industrial Alliance Insurance and Financial Services Inc. has announced:

that it has the intention to redeem, on December 31, 2014, all of its Non-Cumulative Class A Preferred Shares Series E (the “Series E Preferred Shares”) then outstanding. The redemption price will be $26.00 for each Series E Preferred Share less any tax required to be deducted and withheld by Industrial Alliance. There are 4,000,000 Series E Preferred Shares outstanding as of today. A formal notice and instructions for the redemption of the Series E Preferred Shares will be sent to all shareholders in accordance with the rights, privileges, restrictions and conditions attached to the Series E Preferred Shares.

Separately from the redemption price, the final quarterly dividend of $0.3750 per Series E Preferred Share will be paid in the usual manner on December 31, 2014 to shareholders of record on November 28, 2014. After the Series E Preferred Shares are redeemed, holders of Series E Preferred Shares will cease to be entitled to distributions of dividends and will not be entitled to exercise any rights as holders other than to receive the redemption price and the final quarterly dividend described above.

Note that this redemption is at $26.00, a premium to the issue price of $25, which means that for tax purposes holders will be treated as if their $26.00 is comprised of a sale at $25.00 and a deemed dividend of $1.00; this can have important tax consequences, particularly for those who have accumulated capital losses for tax purposes. In many cases it will be advisable for holders to sell prior to redemption (at redemption price less a few pennies so the purchaser can make a little money, but plus the final dividend value if sold before the ex-dividend date). Please consult your personal tax advisor.

IAG.PR.E is a 6.00% Straight Perpetual (considered to be a DeemedRetractible since it’s issued by an insurer) which commenced trading 2009-10-15 after being announced 2009-10-6.

2 Responses to “IAG.PR.E To Be Redeemed”

  1. FletcherLynn says:

    Prefinfo doesn’t show this as redeemed.

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