Co-operators Financial Services Limited announces offering of $300 million of 3.327% Senior Unsecured Debentures due 2030

GUELPH, ON, May 6, 2020 /CNW/ - Co-operators Financial Services Limited (CFSL) announced today that it has agreed to complete an offering of $300 million aggregate principal amount 3.327% Senior Unsecured Debentures due May 13, 2030 by way of a private placement, pursuant to certain exemptions from the prospectus requirements of applicable securities laws of the provinces of Canada. The offering is scheduled to be completed on May 11, 2020, subject to the satisfaction of customary conditions.

The debentures bear interest at a rate of 3.327% per annum, payable semi-annually on May 13 and November 13 of each year, commencing on November 13, 2020, and are due on May 13, 2030.  

The issue has been offered on an agency basis by a syndicate of dealers co-led by Scotia Capital Inc. and TD Securities Inc. The broader syndicate included National Bank Financial Inc., BMO Nesbitt Burns Inc., and RBC Dominion Securities Inc.

The proceeds of the offering will be used by CFSL for general corporate purposes and to provide additional capital to its subsidiaries as required.

"We are encouraged to see the positive response from the investment community to our debt offering, especially during what has been a time of great uncertainty in global markets," said Rob Wesseling, President and CEO of The Co-operators Group Limited. "It is a sign of confidence in our long-term stability as a co-operative and an acknowledgement of our strong capital position."

The Debentures referred to in this press release have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), and may not be offered or sold within the United States, or for the account or benefit of any "US Persons" as such term is defined in Regulation S under the U.S. Securities Act. This news release does not constitute an offer to buy any of the Debentures in the United States.

About The Co-operators:
The Co-operators Group Limited is a Canadian co-operative with more than $47.3 billion in assets under administration. Through its group of companies, it offers home, auto, life, group, travel, commercial and farm insurance, as well as investment products. The Co-operators is well known for its community involvement and its commitment to sustainability. The Co-operators is ranked as the Corporate Knights' #1 Best 50 Corporate Citizen in Canada and listed among the Best Employers in Canada by Kincentric (formerly AON). For more information, visit www.cooperators.ca.

SOURCE The Co-operators

Karen Higgins, Executive Vice President, Finance and Chief Financial Officer, Telephone: [phone]

Related Links

www.cooperators.ca