Sun Life announces offering of Subordinated Unsecured Debentures
Sun Life Financial Inc. (TSX: SLF) announced the issuance of $750 million in Series 2020-2 Subordinated Unsecured 2.06% Fixed/Floating Debentures due 2035, with closing expected on October 1, 2020. The net proceeds will support general corporate purposes, including subsidiary investments and debt repayment. The offering will be managed by RBC Capital Markets, CIBC Capital Markets, and Scotiabank. The debentures qualify as Tier 2 capital and are not registered under U.S. securities law, limiting their sale within the U.S.
- Issuing $750 million in subordinated debentures strengthens capital structure.
- Proceeds will support strategic investments and debt repayments.
- Debentures not registered under U.S. Securities Act, limiting market reach.
- Potential reliance on debt financing could raise long-term risks.
TORONTO, Sept. 29, 2020 /PRNewswire/ - Sun Life Financial Inc. (TSX: SLF) (NYSE: SLF) (the "Company") announced today that it intends to issue in Canada
Details of the offering will be set out in a pricing supplement that the Company intends to issue pursuant to its short form base shelf prospectus and its prospectus supplement, each dated March 28, 2019, all of which are or will be available on the SEDAR website for Sun Life Financial Inc. at www.sedar.com. The Debentures will be sold on a best efforts agency basis by a syndicate led by RBC Capital Markets, CIBC Capital Market and Scotiabank, as co-leads. The proceeds from this offering are expected to qualify for Tier 2 capital.
The Debentures have not been and will not be registered under the United States Securities Act of 1933, as amended, and may not be offered, sold or delivered, directly or indirectly, within the United States of America and its territories and possessions or to, or for the account or benefit of, United States persons except in certain transactions exempt from the registration requirements of such Act. This release does not constitute an offer to sell or a solicitation to buy such securities in the United States.
Forward-Looking Statements
From time to time, the Company 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 news release include statements (i) regarding the closing and use of proceeds of the offering; (ii) that are predictive in nature or that depend upon or refer to future events or conditions; and (iii) that include words such as "intends", "expects", "will" and similar expressions. The forward-looking statements in this news release are stated as at September 29, 2020, represent the Company's current expectations, estimates and projections regarding future events and are not historical facts. These statements are not a guarantee of future performance and involve assumptions and risks and uncertainties that are difficult to predict. Some of these assumptions and risks and uncertainties are described further in the Company's management's discussion and analysis for the year ended December 31, 2019 under the heading "Forward-looking Statements", in the risk factors set out in the Company's annual information form for the year ended December 31, 2019 under the heading "Risk Factors" and in the Company's interim management's discussion and analysis for the quarter ended June 30, 2020 under the heading "Risk Management", in the other factors detailed in the Company's annual and interim financial statements and in the Company's other filings with Canadian and U.S. securities regulators, which are available for review at www.sedar.com and www.sec.gov, respectively. Actual results may differ materially from those expressed, implied or forecasted in such forward-looking statements.
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 news release or to reflect the occurrence of unanticipated events, except as required by law.
About Sun Life
Sun Life is a leading international financial services organization providing a diverse range of insurance, wealth and asset management solutions to individual and corporate 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 June 30, 2020, Sun Life had total assets under management of
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
Media Relations Contact: | Investor Relations Contact: |
Irene Poon | Leigh Chalmers |
Manager Corporate Communications | Senior Vice-President, Head of Investor Relations |
Sun Life | Sun Life |
t. 416-988-0542 | t. 647-256-8201 |
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SOURCE Sun Life Financial Inc.
FAQ
What is the amount of the subordinated debentures issued by SLF?
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