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(September 12, 2017)
NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.
KINGSTON, Ontario, Sept. 12, 2017 (GLOBE NEWSWIRE) -- The Empire Life Insurance Company (“Empire Life” or “the Company”) (TSX:EML.PR.A) announced today that it intends to issue in Canada, by way of private placement, $200 million principal amount of subordinated unsecured 3.664% fixed/floating debentures due March 15, 2028 (the “Debentures”).
The offering is expected to close September 15, 2017. The net proceeds of the issue will be used for regulatory capital and general corporate purposes, which may include the redemption of outstanding debt.
The Debentures will mature on March 15, 2028 and will bear interest at a fixed annual rate of 3.664% for the first five and a half years, payable semi-annually, and a variable rate equal to the 3-Month CDOR plus 1.53% for the last five years, payable quarterly. The Debentures have been assigned a provisional rating of “A (low)” with a stable trend by DBRS Limited.
The issue will be offered on an agency basis by a syndicate of dealers, led by BMO Nesbitt Burns Inc. and CIBC World Markets Inc., and which includes Scotia Capital Inc., GMP Securities L.P., National Bank Financial Inc., RBC Dominion Securities Inc. and TD Securities Inc..
On a pro forma basis, after giving effect to the Debenture issue, the Company estimates that, as at June 30, 2017 its solvency ratio would have increased from 249% to 265%.
NoticeThe Debentures have not been and will not be registered under the United States Securities Act of 1933, as amended, or any state securities laws of any of the United States, and may not be offered, or sold or delivered directly or indirectly within the United States of America or to or for the account of U.S. persons (as such terms are defined in Regulation S under the U.S. Securities Act). This news release does not constitute an offer to sell or a solicitation to buy such securities in the United States.
About Empire Life
Established in 1923 and a subsidiary of E-L Financial Corporation Limited, Empire Life provides individual and group life and health insurance, investment and retirement products to Canadians. The company’s mission is to make it simple, fast and easy for Canadians to get the investment, insurance and group benefits coverage they need to build wealth, generate income and achieve financial security. As of June 30, 2017 Empire Life had total assets under management of $16.7 billion. Follow Empire Life on Twitter @EmpireLife or visit www.empire.ca for more information.
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