Great-West Lifeco Inc. has announced:
the dividend rates for its Non-Cumulative 5-Year Rate Reset First Preferred Shares, Series N (“Series N Shares”) and Non-Cumulative Floating Rate First Preferred Shares, Series O (“Series O Shares”).
The annual fixed dividend rate for the five-year period starting on December 31, 2025 and ending on December 30, 2030 that will apply to any Series N Shares that remain outstanding on December 31, 2025 will be 4.090% per annum (or $0.255625 per Series N Share per quarter). The 4.090% annual rate is equal to the sum of the Government of Canada Yield (as defined in the Series N Share terms) on December 1, 2025 plus 1.30%.
The floating dividend rate for the period starting on December 31, 2025 and ending on March 30, 2026 that will apply to any Series O Shares issued on December 31, 2025 will be 3.518% per annum (or $0.216863 per Series O Share per quarter). The 3.518% annual rate is equal to the sum of the T-Bill Rate (as defined in the Series O Share terms) on December 1, 2025 plus 1.30%.
A news release announcing the conversion right for the Series N Shares was issued on November 13, 2025 and can be viewed on Lifeco’s website. Beneficial owners of Series N Shares who wish to convert their shares into Series O Shares should communicate as soon as possible with their broker or other nominee to ensure their instructions are followed, so that the registered holder of the Series N Shares can meet the deadline to exercise the conversion right, which is 5:00 p.m. (ET) on Tuesday, December 16, 2025.
GWO.PR.N was issued as a FixedReset, 3.65%+130, that commenced trading 2010-11-23 after being announced 2010-11-15. The issue was met with disfavour and there was an inventory clearance sale closing 2010-12-3. After a notice of extension the issue issue reset to 2.176% in 2015. I recommended against conversion; there was a 15% conversion to the FloatingReset GWO.PR.O anyway. The company provided another notice of extension in November, 2020. The issue reset to 1.749% effective 2020-12-31 and there was a forced conversion from GWO.PR.O to the FixedReset. A notice of extension was provided 2025-11-13. The issue is tracked by HIMIPref™ and is assigned to the FixedReset (Insurance) subindex.
Thanks to Assiduous Reader niagara for bringing this to my attention!
Update, 2025-12-18: Great-West Lifeco Inc. has announced:
that holders of 6,425 Lifeco Non-Cumulative 5-Year Rate Reset First Preferred Shares, Series N (“Series N Shares”) have elected to convert their Series N Shares on a one-for-one basis into Non-Cumulative Floating Rate First Preferred Shares, Series O (“Series O Shares”) on December 31, 2025.
Lifeco currently has 10,000,000 Series N Shares outstanding. After taking into account all shares tendered for conversion, there would be less than one million Series O Shares outstanding on December 31, 2025. As a result and in accordance with the terms and conditions of the shares, no Series N Shares may be converted into Series O Shares on December 31, 2025. Lifeco will give written notice to that effect to any registered holder on or before Wednesday, December 24, 2025.
Thanks to Assiduous Readers P_I and Niagara for bringing this to my attention in the comments below!
According to https://www.newswire.ca/news-releases/great-west-lifeco-reports-results-of-conversion-election-for-non-cumulative-5-year-rate-reset-first-preferred-shares-series-n-834574056.html some holders converted their shares,
“holders of 6,425 Lifeco Non-Cumulative 5-Year Rate Reset First Preferred Shares, Series N (“Series N Shares”) have elected to convert their Series N Shares on a one-for-one basis into Non-Cumulative Floating Rate First Preferred Shares, Series O (“Series O Shares”) on December 31, 2025.”
not nearly enough elected to do so, so none will be converted….
“After taking into account all shares tendered for conversion, there would be less than one million Series O Shares outstanding on December 31, 2025. As a result and in accordance with the terms and conditions of the shares, no Series N Shares may be converted into Series O Shares on December 31, 2025.”