Great-West Issuing Debt through Affiliate: Logjam Clearing?

GWO has announced:

that an affiliated Delaware Limited Partnership, Great-West Lifeco Finance (Delaware) LP (GWLP), has today filed a preliminary short form prospectus for an offering by GWLP of subordinated debentures. The obligations of GWLP under the debentures will be guaranteed by Lifeco on a subordinated basis.

The subordinated debentures will be offered through a syndicate of underwriters jointly led by BMO Capital Markets, Merrill Lynch Canada and Scotia Capital. The amount and yield of the Debentures will be determined prior to the filing of the final prospectus. The net proceeds will be used by GWLP to provide funding to subsidiaries of Lifeco for general corporate purposes, including to finance the previously announced acquisition of Putnam Investments Trust.

The short-form preliminary prospectus is available on SEDAR. Most of the good stuff – issue size, interest rate – has been left blank, but basically it’s fixed for ten years, floating thereafter. It sort-of matures in 2047, but really matures in 2067. There is also a “replacement capital” covenant that governs how fast they can pay it back.

Frankly issue terms are ferociously complex and quite a bit of time will be required to understand the provisions of this debt. However, one way or another, it looks like the funding push is underway and GWO may now start clarifying the situation with respect to preferreds.

GWO has the following direct issues outstanding: GWO.PR.E, GWO.PR.F, GWO.PR.G, GWO.PR.H, GWO.PR.I & GWO.PR.X. Related issuers are POW, PWF & CL.

4 Responses to “Great-West Issuing Debt through Affiliate: Logjam Clearing?”

  1. […] PrefBlog Canadian Preferred Shares – Data and Discussion « Great-West Issuing Debt through Affiliate: Logjam Clearing? […]

  2. […] Now with a pre-tax bid-YTW of 3.50% based on a bid of 26.70 and a call 2009-10-30 at 26.00. Still some uncertainty with this issue … but at least Great-West is investment grade! […]

  3. […] After a bond issue in June the refinancing of the bridge debt languished. The original intention had been to issue hybrids (probably prefs); not only has this source of supply been removed, the issuer bid for GWO.PR.E / GWO.PR.X might see a bit more activity now. […]

  4. […] Now with a pre-tax bid-YTW of 5.37% based on a bid of 25.71 and a call 2011-1-30 at 25.00. Still not called, despite their recent financing. Astonishing; I can only suppose they’re waiting to complete the rest of their capital markets programme. […]

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