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Canadian Life Companies Split Corp. Announces Overnight Offering

Strategic Insights

— 2 min read

The Canadian Life Companies Split Corp. ("the Company") is undertaking an overnight offering of Preferred Shares and Class A Shares. The offering, led by National Bank Financial Inc., will end on June 19, 2025, and the Company expects to close the deal on or about June 26, 2025, subject to certain conditions. The Preferred Shares will be offered at a price of $10.55 per share with a yield of 6.64%, while the Class A Shares will be offered at a price of $6.35 per share with a yield of 18.90%.

Key Takeaways:

  • The offering will consist of Preferred Shares (TSX: LFE.PR.B) and Class A Shares (TSX: LFE) of the Company, with the sales period ending on June 19, 2025.
  • The Preferred Shares will be offered at a price of $10.55 per share to yield 6.64%, while the Class A Shares will be offered at a price of $6.35 per share to yield 18.90%.
  • The Company's investment objectives for the Preferred Shares are to provide fixed, cumulative preferential monthly cash dividends and to pay investors the original $10 issue price on or about December 1, 2030.
  • The Class A Shares will provide regular monthly cash dividends, with the possibility of paying investors the amounts remaining after paying Preferred Shares on or about December 1, 2030.
  • The Company will invest the net proceeds in an actively managed portfolio consisting of four publicly traded Canadian life insurance companies: Great-West Lifeco Inc., Industrial Alliance Insurance & Financial Services Inc., Manulife Financial Corporation, and Sun Life Financial Inc.
  • The Company's investment portfolio will focus on Canadian life insurance companies, with the intention of providing investors with regular dividend payments and a potential increase in earnings.
  • The prospectus supplement will be filed with securities commissions or similar authorities in all provinces of Canada, and investors can obtain copies of the prospectus supplement and short form base shelf prospectus from their registered financial advisor or representatives of the agents.

Statistics:

  • Preferred Shares: $10.55 per share at a yield of 6.64%
  • Class A Shares: $6.35 per share at a yield of 18.90%
  • Combined total of aggregate dividends declared on the Preferred and Class A Shares since inception: $21.59 per unit
  • Closing price of the Preferred Shares on June 17, 2025: $10.71
  • Closing price of the Class A Shares on June 17, 2025: $6.39

Sources:

  • Globe Newswire, June 18, 2025
  • Canadian Life Companies Split Corp. prospectus supplement (filed with securities commissions or similar authorities in all provinces of Canada)
  • National Bank Financial Inc.
  • Great-West Lifeco Inc.
  • Industrial Alliance Insurance & Financial Services Inc.
  • Manulife Financial Corporation
  • Sun Life Financial Inc.

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