Canada NewsWire
QUEBEC, May 25, 2022
/Not for distribution to U.S. newswire services or for dissemination in the United States/
QUEBEC, May 25, 2022 /CNW Telbec/ - iA Financial Corporation Inc. (the "Company") announced today that it intends to issue $250 million aggregate principal amount of 6.611% Limited Recourse Capital Notes Series 2022‑1 (Subordinated Indebtedness) (the "Notes") due June 30, 2082 (the "Offering").
The Offering is expected to close on or about June 1, 2022. The Company intends to use the net proceeds from the sale of the Notes for general corporate purposes, which may include investments in subsidiaries and repayment of indebtedness.
The Notes will mature on June 30, 2082. Interest on the Notes at the rate of 6.611% per annum will be payable in semi-annual installments in arrears on June 30 and December 31 in each year, commencing on December 31, 2022 and continuing until June 30, 2027. Starting on June 30, 2027 and on every fifth anniversary of such date thereafter until June 30, 2077 (each such date an "Interest Reset Date"), the interest rate on the Notes will be reset at an interest rate per annum equal to the prevailing 5-year Government of Canada Yield on the business day prior to such Interest Reset Date, plus 4.00%.
In connection with the issuance of the Notes, the Company will issue 250,000 Non-Cumulative 5-Year Rate Reset Class A Preferred Shares, Series A (the "Series A Shares"). These shares will be held by Computershare Trust Company of Canada, as trustee of a newly formed trust (the "Limited Recourse Trust"). In the event of a non‑payment of interest or of the principal amount on the Notes when due, the recourse of each holder of Notes shall be limited to that holder's pro rata share of the assets of the Limited Recourse Trust, which assets will consist of the Series A Shares, except in certain limited circumstances.
Subject to the prior approval of the Autorité des marchés financiers, the Company may, on June 30, 2027 and every five years thereafter during the period from May 31 to and including June 30, redeem the Notes, in whole or in part, on not less than 10 days' and not more than 60 days' prior written notice from the Company, at a redemption price which is equal to the aggregate of the principal amount of the Notes to be redeemed and any accrued and unpaid interest on such Notes up to, but excluding, the date of the redemption.
The Offering is being done on a best efforts agency basis by a syndicate of agents co-led by RBC Capital Markets, TD Securities and National Bank Financial Markets.
The Offering is being made under the Company's short form base shelf prospectus dated April 5, 2022. Complete details of the Offering are set out in the prospectus supplement dated May 25, 2022, which will be filed with the Canadian securities regulatory authorities and will be available on SEDAR at www.sedar.com and on the Company's website at www.ia.ca.
This press release does not constitute an offer to sell or the solicitation of an offer to buy any security and shall not constitute an offer, solicitation or sale of any securities in any jurisdiction in which such offering, solicitation or sale would be unlawful.
The Notes have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or the securities laws of any state of the United States of America, and may not be offered, sold or delivered, directly or indirectly, within the United States, its territories, its possessions and other areas subject to its jurisdiction or to, or for the account or benefit of, U.S. persons (as defined in Regulation S under the U.S. Securities Act), except in certain transactions exempt from, or not subject to, the registration requirements of the U.S. Securities Act and applicable state securities laws. This press release does not constitute an offer to sell or a solicitation of an offer to buy any of these securities within the United States.
iA Financial Group is one of the largest insurance and wealth management groups in Canada, with operations in the United States. Founded in 1892, it is an important Canadian public company and is listed on the Toronto Stock Exchange under the ticker symbols IAG (common shares) and IAF (preferred shares).
iA Financial Group is a business name and trademark of iA Financial Corporation Inc. and Industrial Alliance Insurance and Financial Services Inc. |
SOURCE iA Financial Group
View original content: http://www.newswire.ca/en/releases/archive/May2022/25/c8740.html
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