GUELPH, ON, March 10 /CNW/ - Co-operators Financial Services Limited (CFSL) announced today that it has completed an offering of $150 million aggregate principal amount 5.778% Senior Unsecured Debentures due 2020 by way of a private placement, pursuant to certain exemptions from the prospectus requirements of applicable securities laws of the provinces of Canada.
The debentures bear interest at a rate of 5.778% per annum, payable semi-annually on March 10 and September 10 of each year, commencing on September 10, 2010, and are due on March 10, 2020.
The issue has been offered on an agency basis by a syndicate of dealers co-led by Scotia Capital Inc. and RBC Dominion Securities Inc. TD Securities Inc. and Desjardins Securities Inc. also acted as agents for the offering.
The proceeds of the offering will be used to enable CFSL to provide additional capital to its subsidiaries and for general corporate purposes.
"We were very pleased with the positive response to our debt offering, which reflected the investment community's confidence in the financial strength of our organization," commented Kathy Bardswick, President and Chief Executive Officer of The Co-operators Group Limited.
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 (U.S. Securities Act) or any state securities laws and may not be offered or sold in the United States or to U.S. persons except in compliance with the registration requirements of the U.S. Securities Act and applicable state securities laws or pursuant to an exemption therefrom. This news release does not constitute an offer to buy any of the Debentures in the United States.
Based in Guelph, Ontario, The Co-operators is a group of Canadian companies that provide home, auto, life, group, travel, commercial and farm insurance, as well as investment products. CFSL is a subsidiary of The Co-operators Group Limited, a 100 per cent Canadian-owned co-operative with more than $36.9 billion in assets under administration. It is owned by a group of Canadian co-operatives, credit union centrals and like-minded organizations. It is well known for its community involvement, and is listed among the 50 Best Employers in Canada.
SOURCE The Co-operators
For further information: For further information: Bruce West, Executive Vice President, Finance and Chief Financial Officer, Telephone: (519) 767-3036, Fax: (519) 824-0599