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Sun Life announces interest rate reset on Limited Recourse Capital Notes Series

SLF
  • Sun Life Financial Inc. announced the interest rate for its $1 billion principal amount of 3.60% Limited Recourse Capital Notes Series 2021-1 for the five-year period commencing June 30, 2026.
  • The interest rate for the period from June 30, 2026, to June 30, 2031, is set at 5.614% per annum, calculated as the Government of Canada Yield plus 2.604% as of June 29, 2026.
  • Interest payments will be made semi-annually in arrears on June 30 & December 31, with the first payment occurring on December 31, 2026.
  • The Notes are scheduled to mature on June 30, 2081.
  • The Notes are linked to 1,000,000 Class A Non-Cumulative Rate Reset Preferred Shares Series 14 held by the Limited Recourse Trust, limiting noteholder recourse to the Trust's assets in case of non-payment.
  • The Company may redeem the Notes from May 31, 2031, to June 30, 2031, & every five years thereafter, subject to regulatory approval & concurrent redemption of an equal face amount of Series 14 Shares.