/NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE
WINNIPEG, May 13, 2014 /CNW/ - Great-West Lifeco Inc. ("Lifeco" or the
"Company") has today entered into an agreement with a syndicate of
underwriters co-led by BMO Capital Markets and Scotiabank under which the
underwriters have agreed to buy, on a bought deal basis, 6,000,000
Non-Cumulative First Preferred Shares, Series S (the "Series S Shares") from
Lifeco for sale to the public at a price of $25.00 per Series S Share,
representing aggregate gross proceeds of $150 million.
Lifeco has granted the underwriters an underwriters' option to purchase an
additional 2,000,000 Series S Shares at the same offering price. Should the
underwriters' option be fully exercised, the aggregate gross proceeds of the
Series S Shares offering will be $200 million.
The Series S Shares will yield 5.25% per annum, payable quarterly, as and when
declared by the Board of Directors of the Company. The Series S Shares will
not be redeemable prior to June 30, 2019. On and after June 30, 2019, Lifeco
may, on not less than 30 nor more than 60 days' notice, redeem for cash the
Series S Shares in whole or in part, at the Company's option, at $26.00 per
share if redeemed on or after June 30, 2019 and prior to June 30, 2020; $25.75
per share if redeemed on or after June 30, 2020 and prior to June 30, 2021;
$25.50 per share if redeemed on or after June 30, 2021 and prior to June 30,
2022; $25.25 per share if redeemed on or after June 30, 2022 and prior to June
30, 2023; and $25.00 per share if redeemed on or after June 30, 2023, in each
case together with all declared and unpaid dividends up to but excluding the
date of redemption.
The Series S Share offering is expected to close on May 22, 2014. The net
proceeds will be used for general corporate purposes and to augment Lifeco's
current liquidity position.
The Series S Shares have not been and will not be registered under the U.S.
Securities Act of 1933, as amended, and may not be offered or sold in the
United States absent registration or an applicable exemption from the
registration requirements. This news release shall not constitute an offer to
sell or the solicitation of an offer to buy nor shall there be any sale of the
securities in any State in which such offer, solicitation or sale would be
Great-West Lifeco Inc. (TSX:GWO) is an international financial services
holding company with interests in life insurance, health insurance, retirement
and investment services, asset management and reinsurance businesses.
Great-West Lifeco has operations in Canada, the United States, Europe and Asia
through Great-West Life, London Life, Canada Life, Irish Life, Great-West
Financial and Putnam Investments. Great-West Lifeco and its companies have
$806 billion* in consolidated assets under administration and are members of
the Power Financial Corporation group of companies.
*Assets as of March 31, 2014
Cautionary note regarding Forward-Looking Information
This release contains some forward-looking statements about the Company,
including its business operations, strategy and expected financial performance
and condition. Forward-looking statements include statements that are
predictive in nature, depend upon or refer to future events or conditions, or
include words such as "expects", "anticipates", "intends", "plans",
"believes", "estimates" and similar expressions or negative versions thereof.
In addition, any statement that may be made concerning future financial
performance (including revenues, earnings or growth rates), ongoing business
strategies or prospects, and possible future actions by the Company, including
statements made with respect to the expected benefits of acquisitions and
divestitures, are also forward-looking statements. Forward-looking statements
are based on expectations and projections about future events that were
current at the time of the statements and are inherently subject to, among
other things, risks, uncertainties and assumptions about the Company, economic
factors and the financial services industry generally, including the insurance
and mutual fund industries. They are not guarantees of future performance,
and actual events and results could differ materially from those expressed or
implied by forward-looking statements. Material factors and assumptions that
were applied in formulating the forward-looking information contained herein
include the assumption that the business and economic conditions affecting the
Company's operations will continue substantially in their current state,
including, without limitation, with respect to market prices for products
provided, sales levels, premium income, fee income, expense levels, mortality
experience, morbidity experience, policy lapse rates, taxes, inflation,
information systems, general economic, political and market factors in North
America and internationally, interest and foreign exchange rates, global
equity and capital markets, business competition, continuity and availability
of personnel and third party service providers, and the Company's ability to
complete strategic transactions and integrate acquisitions, and that there
will be no unplanned material changes to the Company's facilities, customer
and employee relations or credit arrangements. Many of these assumptions are
based on factors and events that are not within the control of the Company and
there is no assurance that they will prove to be correct. Other important
factors and assumptions that could cause actual results to differ materially
from those contained in forward-looking statements include technological
change, investment values, payments required under investment products,
reinsurance, changes in local and international laws and regulations, changes
in accounting policies and the effect of applying future accounting policy
changes, unexpected judicial or regulatory proceedings and catastrophic
events. The reader is cautioned that the foregoing list of assumptions and
factors is not exhaustive, and there may be other factors listed in other
filings with securities regulators, including factors set out in the Company's
2013 Annual Management Discussion & Analysis (MD&A) under "Risk Management and
Control Practices" and "Summary of Critical Accounting Estimates", which,
along with other filings, is available for review at www.sedar.com. The
reader is also cautioned to consider these and other factors carefully and not
to place undue reliance on forward-looking statements. Other than as
specifically required by applicable law, the Company does not intend to update
any forward-looking statements whether as a result of new information, future
events or otherwise.
Cautionary note regarding Non-IFRS Financial Measures
This release contains some non-IFRS financial measures. Terms by which
non-IFRS financial measures are identified include, but are not limited to,
"operating earnings", "constant currency basis", "premiums and deposits",
"sales", and other similar expressions. Non-IFRS financial measures are used
to provide management and investors with additional measures of performance.
However, non-IFRS financial measures do not have standard meanings prescribed
by IFRS and are not directly comparable to similar measures used by other
companies. Please refer to the appropriate reconciliations of these non-IFRS
financial measures to measures prescribed by IFRS.
SOURCE Great-West Lifeco Inc.
Marlene Klassen, APR Assistant Vice-President, Communication Services
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-0- May/13/2014 13:25 GMT
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