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Preferred Share Description
Sun Life Financial Inc. (SLF.PR.G)
2.275% Non-Cumulative, Redeemable, Rate Reset, Class A preferred shares, Series 8R
Prospectus - May 13, 2010
DBRS Credit Rating: December 5, 2018 - DBRS confirmed Sun Life Financial Inc.’s Issuer Rating and Senior Unsecured Debentures rating at “A” as well as its Subordinated Unsecured Debentures rating at A (low) and Preferred Shares rating at Pfd-2.
DBRS also confirmed Sun Life Assurance Company of Canada’s Financial Strength Rating and Issuer Rating at AA (low) as well as its Subordinated Debt rating at A (high). At the same time, DBRS confirmed Sun Life Capital Trust’s SLEECS Series B rating and Sun Life Capital Trust II’s SLEECS Series 2009-1 rating at “A.” All trends are Stable.
Sun Life has maintained its excellent franchise strength with operations that are well diversified by product, geography and distribution channel. The Company is the second-largest Canadian life insurer based on gross written premiums with a 20% market share. SLF has good business diversification through operations in the United States, Asia and its asset management businesses. Regulatory capital at the Company is well above the required Life Insurance Capital Adequacy Test (LICAT) ratio at 145% as of Q3 2018, which provides an ample cushion to deal with a stressed scenario. Earnings have also remained solid and well diversified across its four core business segments.
Dividend Note: On June 30, 2015, the annual dividend rate was reset to 2.275%, down from it's initial rate of 4.35%.
Conversion Note: On June 30, 2015, Series 8R Rate Reset shareholders converted 6,007,314 shares into the Series 9QR Floating-Rate preferred shares. The floating rate shares currently trade under the symbol SLF.PR.J.
- DBRS Rating
- Pfd-2 Stable Trend
- DBRS Rating Date
- Shares Issued
- Issued Date
- Shares O/S
- O/S Date
- $0.56875 per share per year
- Dividend Dates
- Payable on the last day of March, June, September and December
- Dividend Details
- The current dividend rate is fixed at 2.275% per share, per year, until June 30, 2020. On June 30, 2020 and on June 30th every 5 years thereafter the dividend rate will be reset to an annual rate that equals the sum of the Government of Canada Yield (GCAN5YR) plus 1.41%.
- The shares are not redeemable by the company prior to June 30, 2020. On June 30, 2020 and on June 30th every five years thereafter, the company can redeem the shares at $25.00 per share.
- Holders of the Series 8R Rate Reset shares will have the right to convert all or a portion of the shares into Series 9QR Floating-Rate preferred shares on June 30, 2020 and on June 30th every 5 years thereafter. The Floating-Rate shares will calculate and pay dividends quarterly. The floating quarterly rate will be equal to the sum of the 3-month Government of Canada Treasury Bill yield plus 1.41%. In addition, on June 30, 2020 and on June 30th every 5 years thereafter, Series 9QR Floating-Rate shareholders will have the option to convert all or part of their shares into Series 8R Rate Reset preferred shares.
- Lead Underwriter(s)
- ScotiaBank, RBC Dominion Securities, TD Securities
- Transfer Agent
- CIBC Mellon Trust Company
- CIBC Mellon Trust Company
- Dividend Reinvestment Plan
- Preferred shareholders can automatically reinvest their cash dividends to purchase Common shares. For more information, visit http://www.sunlife.com/Global/Investors/Shareholder+services/Canadian+Dividend+Reinvestment+and+Share+Purchase+Plan?vgnLocale=en_CA
- Last Updated