Canadian Life Companies Split closes overnight offering

Executive Summary

• Canadian Life Companies Split Corp. completed an overnight offering of preferred shares (LFE.PR.B) and Class A shares (LFE), raising approximately $60.1 million in gross proceeds.
• The offering is led by National Bank Financial Inc. and is expected to close on or about February 11, 2026, subject to TSX approval and other conditions.
• Net proceeds will be invested in an actively managed portfolio of four major Canadian life insurance companies: Great-West Lifeco, iA Financial Corp., Manulife Financial, and Sun Life Financial.

Key Details

• Gross Proceeds: Approximately $60.1 million.
• Preferred Shares (LFE.PR.B):
  • Offered at $10.45 per share.
  • Closing price on Feb 3, 2026: $10.55.
  • Dividend Rate: Fixed, cumulative preferential monthly cash dividends at the greater of 7.00% or prime rate plus 2% (max 9%) annually, based on a $10 original issue price.
  • Redemption: Original $10 issue price payable on or about Dec 1, 2030 (subject to six-year extensions).
• Class A Shares (LFE):
  • Offered at $7.65 per share.
  • Closing price on Feb 3, 2026: $7.78.
  • Dividends: Regular monthly cash dividends as determined by directors.
  • Redemption: Remaining amounts payable on or about Dec 1, 2030 (after preferred share obligations), subject to six-year extensions.
• Use of Proceeds: Investment in an actively managed portfolio consisting of Great-West Lifeco Inc., iA Financial Corp. Inc., Manulife Financial Corp., and Sun Life Financial Inc.
• Closing Date: Expected on or about February 11, 2026.
• Regulatory: A prospectus supplement to the short form base shelf prospectus (dated May 1, 2024, amended Oct 2, 2025) will be filed with securities commissions in all Canadian provinces.

Notable Quotes

• No direct quotes from management were included in the provided text.