TORONTO, Aug. 15, 2016 /CNW/ - Sun Life Financial Inc. (TSX: SLF) (NYSE:
SLF) ("Sun Life Financial") today announced that it does not intend to
exercise its right to redeem its outstanding Class A Non-Cumulative
Rate Reset Preferred Shares Series 10R (the "Series 10R Shares") on
September 30, 2016. As a result, subject to certain conditions, the
holders of Series 10R Shares will have the right, at their option, to
convert all or part of their Series 10R Shares on a one-for-one basis
into Class A Non-Cumulative Floating Rate Preferred Shares Series 11QR
of Sun Life Financial (the "Series 11QR Shares") on September 30, 2016.
Holders of Series 10R Shares who do not exercise their right to convert
their Series 10R Shares into Series 11QR Shares on that date will
retain their Series 10R Shares.
The foregoing conversions are subject to the following conditions: (i)
if Sun Life Financial determines that there would be less than one
million Series 10R Shares outstanding after September 30, 2016, then
all remaining Series 10R Shares will automatically be converted into
Series 11QR Shares on a one-for-one basis on September 30, 2016, and
(ii) alternatively, if Sun Life Financial determines that there would
be less than one million Series 11QR Shares outstanding after September
30, 2016, no Series 10R Shares will be converted into Series 11QR
Shares. In either case, Sun Life Financial will give written notice to
that effect to any registered holder affected by the preceeding
minimums on or before Thursday, September 22, 2016.
The dividend rate applicable to the Series 10R Shares for the five-year
period commencing on September 30, 2016 to but excluding September 30,
2021, and the dividend rate applicable to the Series 11QR Shares for
the three-month period commencing on September 30, 2016 to but
excluding December 31, 2016, will be determined on Wednesday, August
31, 2016 and will be announced in a news release on August 31, 2016.
Beneficial owners of Series 10R Shares who wish to exercise their right
of conversion should communicate as soon as possible with their broker
or other nominee and should ensure that their instructions are followed
in order to ensure that the deadline to exercise such right of
conversion is met, which is 5:00 p.m. (ET) on Thursday, September 15,
Subject to regulatory approval, Sun Life Financial: (i) may redeem the
Series 10R Shares and the Series 11QR Shares in whole or in part on
September 30, 2021 and on the 30th of September in every fifth year thereafter by the payment of an amount
for each share so redeemed of $25.00, together with all declared and
unpaid dividends to the date fixed for such redemption, and (ii) may
redeem the Series 11QR Shares in whole or in part on any other date
after September 30, 2016 by the payment of an amount for each share so
redeemed of $25.50, together with all declared and unpaid dividends to
the date fixed for such redemption.
An application will be made to list the Series 11QR Shares on the
Toronto Stock Exchange.
The Series 10R Shares and the Series 11QR Shares have not been and will
not be registered under the United States Securities Act of 1933, as
amended, and subject to certain exceptions, may not be offered, sold or
delivered, directly or indirectly, in the United States of America for
the account or benefit of U.S. persons. This release does not
constitute an offer to sell or a solicitation to buy such securities in
the United Sates.
About Sun Life Financial
Sun Life Financial is a leading international financial services
organization providing a diverse range of protection and wealth
products and services to individuals and corporate customers. Sun Life
Financial and its partners have operations in a number of markets
worldwide, including Canada, the United States, the United Kingdom,
Ireland, Hong Kong, the Philippines, Japan, Indonesia, India, China,
Australia, Singapore, Vietnam, Malaysia and Bermuda. As of June 30,
2016, the Sun Life Financial group of companies had total assets under
management of $865 billion. For more information please visit www.sunlife.com.
Sun Life Financial Inc. trades on the Toronto (TSX), New York (NYSE) and
Philippine (PSE) stock exchanges under the ticker symbol SLF.
Note to Editors: All figures in Canadian dollars except as otherwise
SOURCE Sun Life Financial Inc.
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