/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/
TSX Symbol: CIX
TORONTO, Dec. 11 /CNW/ - CI Financial Corp. (TSX:CIX) announced today that it has entered into an agreement to sell debt securities with an aggregate principal amount of $550 million. The offering consists of $100 million principal amount of two-year floating rate debentures due December 16, 2011, $250 million principal amount of three-year 3.3% debentures and $200 million of five-year 4.19% debentures.
This is the first time that CI Financial has issued debt securities and the inaugural issue was over-subscribed by investors. "We were very pleased with the exceptional demand for our issue," said Stephen A. MacPhail, CI President. "The tight pricing reflected the general view of CI being a very strong credit in the market."
The offering was made under CI's previously filed shelf prospectus dated December 10, 2009, and led by Scotia Capital Inc. The underwriting group also included CIBC World Markets Inc., BMO Nesbitt Burns Inc., TD Securities Inc., Blackmont Capital Inc., Dundee Securities Inc. and GMP Securities LP.
CI intends to use the net proceeds of the offering in part for repayment of amounts owing under its credit facility and general corporate purposes. The closing of the offering is scheduled for December 16, 2009, and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals including the approval of the Toronto Stock Exchange.
The debentures have been rated BBB high by Standard & Poor's and A low by DBRS.
This press release contains "forward-looking statements" within the meaning of applicable Canadian securities legislation. Generally, forward-looking statements can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "planned", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, closing of transactions, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking statements, including but not limited to: risks related to capital markets and additional funding requirements, fluctuating interest rates and general economic conditions, legislative and regulatory developments, the nature of our customers and rates of default, and competition as well as those factors discussed in the Company's documents filed on SEDAR (www.sedar.com).
Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The Company does not undertake to update any forward-looking statements that are contained herein, except in accordance with applicable securities laws.
This news release and the information contained herein does not constitute an offer of securities for sale in the United States and securities may not be offered or sold in the United States absent registration or exemption from registration.
CI Financial Corp. (TSX: CIX) is an independent, Canadian-owned wealth management company with approximately $87.6 billion in fee-earning assets at November 30, 2009. CI offers a broad range of investment products and services, including an industry-leading selection of investment funds, and is on the Web at www.ci.com/cix.
SOURCE CI Investments Inc.
For further information: For further information: Stephen A. MacPhail, President, CI Financial Corp., (416) 364-1145