Sun Life announces intention to redeem Series 2019-1 Subordinated Unsecured 2.38% Fixed/Floating Debentures

Rhea-AI Summary

Sun Life (TSX: SLF) (NYSE: SLF) announced its plan to redeem its $750 million Series 2019-1 Subordinated Unsecured 2.38% Fixed/Floating Debentures on August 13, 2024. The redemption, in accordance with the debentures' terms, will be funded from existing cash and liquid assets. Upon redemption, interest will cease to accrue and holders will only be entitled to receive the redemption price, which includes the principal amount and accrued interest.

Positive

• Sun Life's intention to redeem $750 million in debentures shows financial strength.
• Redemption will be funded by existing cash and liquid assets, indicating strong liquidity.
• Reducing debt obligations could lead to improved balance sheet and credit ratings.

Negative

• Redeeming the debentures may reduce available cash for other strategic investments.
• Investors holding the debentures will no longer receive interest payments post-redemption.

TORONTO, June 14, 2024 /PRNewswire/ - Sun Life Financial Inc. (TSX: SLF) (NYSE: SLF) ("Sun Life") today announced its intention to redeem all of the outstanding $750 million principal amount of Series 2019-1 Subordinated Unsecured 2.38% Fixed/Floating Debentures (the "Debentures") in accordance with the redemption terms attached to the Debentures. The redemption will be funded from existing cash and liquid assets.

The Debentures are redeemable at Sun Life's option on or after August 13, 2024 at a redemption price per Debenture equal to the principal amount together with accrued and unpaid interest to the date of redemption. Sun Life intends to redeem the Debentures on August 13, 2024 (the "Redemption Date"). Notice will be delivered to the holders of the Debentures in accordance with the terms outlined in the trust indenture governing the Debentures.

After the Debentures are redeemed, interest will cease to accrue from and after the Redemption Date and holders of Debentures will not be entitled to exercise any rights as holders other than to receive the redemption price.

About Sun Life
Sun Life is a leading international financial services organization providing asset management, wealth, insurance and health solutions to individual and institutional Clients. Sun Life has operations in a number of markets worldwide, including Canada, the United States, the United Kingdom, Ireland, Hong Kong, the Philippines, Japan, Indonesia, India, China, Australia, Singapore, Vietnam, Malaysia and Bermuda. As of March 31, 2024, Sun Life had total assets under management of $1.47 trillion. For more information, please visit www.sunlife.com.

Sun Life Financial Inc. trades on the Toronto (TSX), New York (NYSE) and Philippine (PSE) stock exchanges under the ticker symbol SLF.

Note to editors: All figures in Canadian dollars

Forward-Looking Statements
From time to time, Sun Life makes written or oral forward-looking statements within the meaning of certain securities laws, including the "safe harbour" provisions of the United States Private Securities Litigation Reform Act of 1995 and applicable Canadian securities legislation. Forward-looking statements contained in this release include, without limitation, statements relating to Sun Life's anticipated redemption of the Debentures. These statements represent our current expectations, estimates, and projections regarding future events and are not historical facts, and remain subject to change. Forward-looking statements are not a guarantee of future performance and involve risks and uncertainties that are difficult to predict. Information about forward-looking statements and risk factors relating to the Company are set out in our MD&A for the period ended March 31, 2024 and in Sun Life Financial Inc.'s other annual and interim regulatory filings filed with Canadian securities regulators or furnished to U.S. securities regulators, which are available for review at www.sedarplus.ca and www.sec.gov, respectively.

The Company does not undertake any obligation to update or revise its forward-looking statements to reflect events or circumstances after the date of this document or to reflect the occurrence of unanticipated events, except as required by law.

Media Relations Contact:									Investor Relations Contact:
Kim Race									David Garg
Director									Senior Vice-President, Capital
Corporate Communications									Management and Investor Relations
T. 416-779-4574									T. 416-408-8649
kim.race@sunlife.com									david.garg@sunlife.com

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SOURCE Sun Life Financial Inc.

FAQ

What did Sun Life announce on June 14, 2024?

Sun Life announced its intention to redeem its $750 million Series 2019-1 Subordinated Unsecured 2.38% Fixed/Floating Debentures on August 13, 2024.

What is the redemption date for Sun Life's Series 2019-1 Debentures?

The redemption date for Sun Life's Series 2019-1 Debentures is August 13, 2024.

How will Sun Life fund the redemption of the debentures?

Sun Life will fund the redemption from existing cash and liquid assets.

What will happen to interest payments after the debentures are redeemed?

Interest will cease to accrue from and after the redemption date, and holders will not receive further interest payments.

What is the principal amount of the debentures Sun Life intends to redeem?

Sun Life intends to redeem a principal amount of $750 million.