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Great-West Selling $124 Million In Debt Securities

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NU Online News Service, Nov. 9, 3:56 p.m. – Great West Lifeco Inc., Winnipeg, Saskatchewan, says it will be borrowing the equivalent of about $124 million, in U.S. dollars, by selling debentures through a syndicate of investment dealers led by BMO Nesbitt Burns Inc., Toronto, through a deal scheduled to close Nov. 23.

The debentures are available only in Canada and may not be sold to individual investors in the United States.

Debentures are debt securities backed by the credit reputation of the borrower, rather than the assets of the borrower.

The debentures, which will be due Nov. 24, 2031, will pay 6.74% interest, Great-West says. The principal amount will be $200 million in Canadian dollars.

Great-West says it will use the proceeds of the debenture sale to buy $200 million in subordinated debentures from a subsidiary, The Great-West Life Assurance Company.

Great-West Lifeco is a unit of the Power Financial Corp., Toronto.