/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES./
KINGSTON, ON, Jan. 10, 2023 /CNW/ - The Empire Life Insurance Company ("Empire Life" or the "Company") announced today that it intends to issue in Canada, by way of private placement, $200 million principal amount of 5.503% subordinated unsecured fixed/floating debentures due January 13, 2033 (the "Debentures").
The offering is expected to close January 13, 2023. 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 January 13, 2033 and will bear interest at a fixed annual rate of 5.503% for the first five years, payable semi-annually, and a variable rate equal to Daily Compounded CORRA determined for each interest period plus 2.26%, for the last five years, payable quarterly in arrears. The Debentures have been assigned a provisional rating of "A (low)" with a stable trend by DBRS Limited (DBRS Morningstar).
The issue will be offered on an agency basis by a syndicate of dealers, led by RBC Dominion Securities Inc. and Scotia Capital Inc., and which includes TD Securities Inc., BMO Nesbitt Burns Inc., CIBC World Markets Inc. and National Bank Financial Inc.
On a pro forma basis, after giving effect to the Debenture issue, the Company estimates that, as at September 30, 2022 its LICAT ratio would have increased from 137% to 146%.
The 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.
This news release may contain forward-looking statements and information within the meaning of securities laws including those relating to the proposed issuance of the Debentures and expected effect on the Company's pro forma LICAT ratio which are forward-looking statements and information within the meaning of securities laws. The words "may", "will", "would", "should", "could", "expects", "plans", "intends", "trends", "indications", "anticipates", "believes", "estimates", "predicts", "likely" or "potential" or the negative or other variations of these words or other comparable words or phrases, are intended to identify forward-looking statements and information. Although management believes that the expectations and assumptions on which these forward-looking statements and information are based are reasonable, undue reliance should not be placed on the forward-looking statements and information because there can be no assurance that they will prove to be correct. By their nature, forward-looking statements and information are subject to various risks and uncertainties, which could cause the actual results and expectations to differ materially from the anticipated results or expectations expressed. When relying on Empire Life's forward-looking statements and information to make decisions, investors and others should carefully consider the foregoing factors, assumptions and other uncertainties and potential events. Readers are cautioned not to place undue reliance on this forward-looking information, which is given as of the date hereof or the date indicated, and not to use this forward-looking information for anything other than its intended purpose. Empire Life undertakes no obligation to update publicly or revise any forward-looking statements and information, whether as a result of new information, future events or otherwise after the date of this document, except as required by law. Readers are also cautioned that such information is not exhaustive.
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. The Company's mission is to make it simple, fast and easy for Canadians to get the products and services they need to build wealth, generate income and achieve financial security. As of September 30, 2022, Empire Life had total assets under management of $17.0 billion. Follow us on social media @EmpireLife or visit empire.ca for more information.
SOURCE The Empire Life Insurance Company
Karen Smith, Director, Communication Services, 613 548-1890, ext. 3387, [email protected], www.empire.ca
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