Canadian Life Companies arranges overnight offering

Executive Summary

• Canadian Life Companies Split Corp. has announced an overnight offering of preferred shares and Class A shares, led by National Bank Financial Inc., with sales ending on February 4, 2026.
• The offering aims to raise capital to invest in an actively managed portfolio of four major Canadian life insurance companies: Great-West Lifeco, iA Financial Corp., Manulife Financial, and Sun Life Financial.
• The preferred shares carry a fixed, cumulative monthly dividend rate (greater of 7% or prime + 2%, capped at 9%) and a redemption value of $10 per share, while Class A shares offer variable monthly dividends and residual value upon redemption.

Key Details

• Offering Structure: Overnight offering of preferred shares and Class A shares.
• Lead Underwriter: National Bank Financial Inc.
• Sales Period: Ends at 8:30 a.m. EST on February 4, 2026.
• Expected Closing Date: On or about February 11, 2026, subject to closing conditions including Toronto Stock Exchange approval.
• Pricing:
  • Preferred Shares: $10.45 per share.
  • Class A Shares: $7.65 per share.
• Recent Market Prices (Feb 2, 2026):
  • Preferred Shares: $10.53.
  • Class A Shares: $7.83.
• Use of Proceeds: Net proceeds will be invested in an actively managed portfolio primarily consisting of Great-West Lifeco Inc., iA Financial Corp. Inc., Manulife Financial Corp., and Sun Life Financial Inc.
• Preferred Share Terms:
  • Dividend Rate: Fixed, cumulative, preferential monthly cash dividends at the greater of 7.00% or prime rate plus 2% (maximum 9%) annually, based on a $10 original issue price.
  • Redemption: On or about December 1, 2030 (subject to further six-year extensions), holders will receive the original $10 issue price.
• Class A Share Terms:
  • Dividends: Regular monthly cash dividends as determined by the directors.
  • Redemption: On or about December 1, 2030 (subject to further six-year extensions), holders will receive remaining amounts after preferred share obligations are met.
• Dividend History:
  • Aggregate dividends declared on preferred shares since inception: $12.85 per share.
  • Aggregate dividends declared on Class A shares since inception: $9.85 per share.
  • Combined total: $22.70 per unit.
  • Distribution Type: Tax-advantage eligible Canadian dividends or capital gain dividends.
• Regulatory Filings: A prospectus supplement to the short form base shelf prospectus (dated May 1, 2024, as amended October 2, 2025) will be filed with securities commissions in all Canadian provinces. No sales will occur until the supplement is filed.

Notable Quotes

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