Corporate Update: Great‑West Lifeco Inc. Announces Preferred‑Share Issuance
Great‑West Lifeco Inc. has disclosed that it has entered into a bought‑deal agreement with a syndicate of underwriters for the issuance of preferred shares. Under the terms of the agreement, the company will sell a block of non‑cumulative first‑preferred shares at a predetermined issue price, creating a substantial gross proceeds pool that will be allocated to general corporate purposes. The underwriters have been granted an option to purchase additional shares shortly before the closing of the transaction, thereby potentially increasing the overall proceeds of the offering. The deal is slated to close in late June and will be subject to customary conditions, including regulatory approvals and the satisfaction of standard closing criteria.
Offering Details
The shares will be offered in Canada under a prospectus supplement to the company’s base shelf prospectus. This supplement will be made available through the securities regulatory platform within two business days of the announcement. Investors are encouraged to review the prospectus documents for detailed information about the company, its operations, and the specific terms of the offering.
Key terms of the preferred shares include:
| Feature | Detail |
|---|---|
| Dividend Rate | 5.70 % annual, payable quarterly when declared by the board |
| Registration | Not registered under U.S. securities laws; no offering or sale in the United States |
| Cumulative Feature | Non‑cumulative |
Company Profile
Great‑West Lifeco Inc. is a holding company with operations spanning the United States, Canada, and Europe, operating under the brands Empower, Canada Life, and Irish Life. The company serves a broad customer base and maintains a sizable book of client assets. It is listed on the Toronto Stock Exchange and is a member of the Power Corporation group of companies.
Implications
The issuance of preferred shares represents a strategic move to strengthen Great‑West’s capital base while providing investors with a stable dividend stream. By securing a significant gross proceeds pool, the company positions itself to fund expansion initiatives, refinance existing obligations, or pursue strategic acquisitions, thereby reinforcing its competitive stance across the insurance and financial services sector. The option granted to underwriters may further enhance liquidity for the company, reflecting confidence in the market’s appetite for the offering.
Investors and market participants should monitor the forthcoming prospectus supplement for additional details on underwriting terms, pricing, and the exact composition of the preferred‑share class.
