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Great-West Lifeco announces Limited Recourse Capital Notes offering
Great-West Lifeco announces Limited Recourse Capital Notes offering Canada News...
About this update from Great-west Lifeco Inc.
[{"type":"text","content":"\n \n \n \n Great-West Lifeco announces Limited Recourse Capital Notes offering\n \n \n /* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n \n \n \n \n \n \n Canada NewsWire\n \n \n \n \n \n \n /NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN\n \n THE UNITED STATES\n \n .\n \n /\n \n \n \n \n TSX:GWO\n \n \n \n \n WINNIPEG, MB\n \n ,\n \n Aug. 9, 2021\n \n /CNW/ - Great-West Lifeco Inc. (\"\n \n Lifeco\n \n \") announced today that it intends to issue\n \n $1.5 billion\n \n principal amount of 3.60% Limited Recourse Capital Notes Series 1 (Subordinated Indebtedness) (the \"\n \n Notes\n \n \"). Lifeco intends to file a prospectus supplement to its existing base shelf prospectus in respect of this issue.\n \n \n The Notes will bear interest at a fixed rate of 3.60% per annum, payable semi-annually, for the initial period ending on but excluding\n \n December 31, 2026\n \n . Thereafter, the interest rate on the Notes will reset every five years at a rate equal to the prevailing 5-year Government of Canada Yield (as defined in the trust indenture governing the Notes) plus 2.641%. The Notes mature on\n \n December 31, 2081\n \n .\n \n \n In connection with the issuance of the Notes, Lifeco will issue 1,500,000 Non-Cumulative 5-Year Rate Reset First Preferred Shares, Series U (the \"\n \n Series U Preferred Shares\n \n \") to be held by Computershare Trust Company of\n \n Canada\n \n , as trustee of a newly formed trust (the \"\n \n Limited Recourse Trust\n \n \"). In case of non-payment of interest on or the principal or redemption price of the Notes when due, the recourse of each holder of Notes will be limited to that holder's proportionate share of the Limited Recourse Trust's assets, which will consist of Series U Preferred Shares except in limited circumstances.\n \n \n Lifeco will have the option to redeem the Notes, in whole or in part, every five years during the period from\n \n November 30\n \n to and including\n \n December 31\n \n , commencing on\n \n November 30, 2026\n \n , at a redemption price equal to par, together with accrued and unpa...