SUN LIFE Financial, Inc. is set to redeem all of its 350 million Canadian dollars worth of debt on Feb. 19, 2021, the Canada-based insurer said in a disclosure to the local stock exchange on Monday.
Sun Life Financial will redeem the entire principal amount of its series 2016-1 subordinated unsecured 3.10% fixed/floating debentures on the date it can be bought back.
The securities were issued in February 2016 and are scheduled to mature in 2026, according to the insurer’s past press release. The funds raised were meant to fund its acquisition of the employee benefits business of Assurant, Inc. and other business operations.
The company, which provides insurance, wealth and asset management services to various markets globally including the Philippines, said the funds for the redemption will be coming from its existing cash and liquid assets.
It said the securities are redeemable at a price per debenture equal to the principal amount, plus the accrued and unpaid interest to the date of redemption.
“Sun Life intends to redeem the Debentures on February 19, 2021,” the statement read.
“After the debentures are redeemed, interest will cease to accrue from and after the redemption date and holders of debentures will not be entitled to exercise any rights as holders other than to receive the redemption price,” it added.
Aside from the Philippine Stock Exchange, Sun Life Financial also trades on the Toronto and New York stock exchanges. — Beatrice M. Laforga