Industrial Alliance announces redemption of Industrial Alliance Trust Securities
Industrial Alliance Capital Trust (the "Trust"), a subsidiary of Industrial Alliance Insurance and Financial Services Inc. ("Industrial Alliance"), today announces that it has exercised its right to redeem all of the outstanding Industrial Alliance Trust Securities - Series A ("IATS") with a nominal value of $150 million in accordance with the terms of the Amended and Restated Declaration of Trust dated as of July 4, 2003 (the "Declaration of Trust"). The redemption of the IATS will be effective on June 30, 2013 (the "Redemption Date"). Upon redemption, the Trust will pay to the holders of the IATS a redemption price equal to $1,021.75 per IATS (the "Redemption Price"). The regular distribution due on June 30, 2013 will be paid in the normal course leaving no additional distribution accrued and unpaid on the IATS, including Unpaid Indicated Yield.
Notice of the redemption has been sent to holders of the IATS in accordance with the Declaration of Trust.
After June 30, 2013, the holders of the IATS will cease to be entitled to further distributions of indicated yields or any other distribution, pursuant to the Declaration of Trust or otherwise, and the holders of IATS will not be entitled to exercise any rights in respect of the IATS, except receiving the Redemption Price and the regular distribution due on the Redemption Date (less any tax required to be deducted), without interest.
This press release may contain statements relating to strategies used by Industrial Alliance or statements that are predictive in nature, that depend upon or refer to future events or conditions, or that include words such as "may", "will", "could", "should", "would", "suspect", "expect", "anticipate", "intend", "plan", "believe", "estimate", and "continue" (or the negative thereof), as well as words such as "objective" or "goal" or other similar words or expressions. Such statements constitute forward-looking statements within the meaning of securities laws. Forward-looking statements include, but are not limited to, Industrial Alliance’s expectations regarding the redemption of securities described in this press release and information concerning Industrial Alliance’s possible or assumed future operating results. These statements are not historical facts; they represent only Industrial Alliance’s expectations, estimates and projections regarding future events.
Although Industrial Alliance believes that the expectations reflected in such forward-looking statements are reasonable, such statements involve risks and uncertainties, and undue reliance should not be placed on such statements. Certain material factors or assumptions are applied in making forward-looking statements, and actual results may differ materially from those expressed or implied in such statements. Factors that could cause actual results to differ materially from expectations include, but are not limited to: Industrial Alliance’s current and expected future capital position, general business and economic conditions; level of competition and consolidation; changes in laws and regulations including tax laws; liquidity of Industrial Alliance including the availability of financing to meet existing financial commitments on their expected maturity dates when required; accuracy of information received from counterparties and the ability of counterparties to meet their obligations; accuracy of accounting policies and actuarial methods used by Industrial Alliance; insurance risks including mortality, morbidity, longevity and policyholder behaviour including the occurrence of natural or man-made disasters, pandemic diseases and acts of terrorism.
Additional information about the material factors that could cause actual results to differ materially from expectations and about material factors or assumptions applied in making forward-looking statements may be found in the “Risk Management” section of the 2012 Management’s Discussion and Analysis and in the "Management of Risks Associated with Financial Instruments" note to Industrial Alliance’s consolidated financial statements, and elsewhere in Industrial Alliance’s filings with Canadian securities regulators, which are available for review at www.sedar.com.
The forward-looking statements in this news release reflect Industrial Alliance’s expectations as of the date of this document. Industrial Alliance does not undertake to update or release any revisions to these forward-looking statements to reflect events or circumstances after the date of this document or to reflect the occurrence of unanticipated events, except as required by law.
About Industrial Alliance
Founded in 1892, Industrial Alliance Insurance and Financial Services Inc. is a life and health insurance company with operations in all regions of Canada as well as in the United States. The Company offers a wide range of life and health insurance products, savings and retirement plans, RRSPs, mutual and segregated funds, securities, auto and home insurance, mortgage loans and other financial products and services for both individuals and groups. The fourth largest life and health insurance company in Canada, Industrial Alliance contributes to the financial wellbeing of over three million Canadians, employs 4,300 people and has assets under management and administration of more than $87 billion. Industrial Alliance stock is listed on the Toronto Stock Exchange under the ticker symbol IAG.