Great-West Lifeco Inc. has announced:
that it has entered into an agreement with a syndicate of underwriters led by BMO Capital Markets, RBC Capital Markets, Scotiabank, CIBC Capital Markets and TD Securities pursuant to which the underwriters have agreed to purchase, on a bought deal basis, 8,000,000 Non-Cumulative First Preferred Shares, Series Y (the “Series Y Shares”) from Lifeco for sale to the public at a price of $25.00 per Series Y Share, representing aggregate gross proceeds of $200,000,000.
The Series Y Shares will yield 4.50% per annum, payable quarterly, as and when declared by the Board of Directors of the Company. The Series Y Shares will not be redeemable prior to December 31, 2026. On or after December 31, 2026, Lifeco may, on not less than 30 nor more than 60 days’ notice, redeem for cash the Series Y Shares in whole or in part, at the Company’s option, at $26.00 per share if redeemed on or after December 31, 2026 and prior to December 31, 2027; $25.75 per share if redeemed on or after December 31, 2027 and prior to December 31, 2028; $25.50 per share if redeemed on or after December 31, 2028 and prior to December 31, 2029; $25.25 per share if redeemed on or after December 31, 2029 and prior to December 31, 2030; and $25.00 per share if redeemed on or after December 31, 2030, in each case together with all declared and unpaid dividends up to but excluding the date of redemption.
The net proceeds of the offering will be used for general corporate purposes. The Series Y Share offering is expected to close on October 8, 2021 and is subject to customary closing conditions.
Hi Jim,
Nice to find info like this on your site, but I can not find how to get to the section on New Issues.
Also, is the ‘expected to close’ you mention in the last paragraph an expected date for public purchase?
Thanks, Joel A.
I can not find how to get to the section on New Issues.
Scroll down past the headings “Publisher”, “Recent Posts”, “Recent Comments” and “Archives” in the right-hand navigation panel until you reach “Categories”. Click the “New Issues” link under “Categories” and there you are.
This category is also linked at the bottom of each post in the category, so you can just click on that.
is the ‘expected to close’ you mention in the last paragraph an expected date for public purchase?
Investors currently have their orders in and are waiting to find out the size of their fill. The expected closing date is the date on which the new issue will be delivered, payment is due and the issue starts trading on the Exchange. It is extremely rare that an ‘expected closing date’ encounters a problem, but it has happened.
@jiHymas I’m curious what your take is on this issue and the implications for the current outstanding GWO preferred shares.