TORONTO, Dec. 2, 2015 –CI Financial Corp. (“CI”) announced today that it has entered into an agreement to sell debt securities with an aggregate principal amount of $450 million. The debt securities have a term of five years and carry an interest rate of 2.645% payable semi-annually.
The debentures have a provisional rating of A- by Standard & Poor’s and A (low) by DBRS.
The offering is being made under CI’s previously filed shelf prospectus dated January 6, 2014, and is being led by CIBC Capital Markets. CI intends to use the net proceeds of the offering in part for repayment in full of the $300 million aggregate principal amount of 3.94% debentures due 2016 issued by its subsidiary, CI Investments Inc., which have been called for redemption on December 14, 2015. The remaining net proceeds will be used for general corporate purposes.
The closing of the offering is scheduled for December 7, 2015 and is subject to certain customary conditions.
The securities offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This news release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.
CI Financial Corp. (TSX: CIX) is an independent, Canadian-owned wealth management company with $142.8 billion in assets as of November 30, 2015. CI offers a broad range of investment products and services, and is on the Web at www.cifinancial.com.
This press release contains forward-looking statements with respect to CI and the offering of its debt securities, including in relation to the anticipated closing date and use of the net proceeds of the offering. Although management believes that the expectations reflected in such forward-looking statements are reasonable, such statements involve risks and uncertainties. Actual results may differ materially from those expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially from expectations include, among other things, general economic and market factors, including interest rates, business competition, changes in government regulations or in tax laws, and other factors discussed in materials filed with applicable securities regulatory authorities from time to time.
For further information: Douglas J. Jamieson, Executive Vice-President and Chief Financial Officer, CI Financial Corp., (416) 364-1145