iA Financial Corporation Inc. Announces an Offering of $400 million of 2.400% Fixed/Floating Subordinated Debentures

iA Financial Corporation Inc. (“iA Financial Corporation” or the “Company”) announced today an offering of $400 million principal amount of 2.400% fixed/floating subordinated debentures (the “Debentures”) due February 21, 2030 (the “Offering”).

The Debentures will mature on February 21, 2030. Interest on the Debentures at the rate of 2.400% per annum will be payable in arrears in equal semi-annual installments on February 21 and August 21, in each year, commencing on August 21, 2020 and continuing until February 21, 2025. After February 21, 2025, interest on the Debentures will be payable at a rate per annum equal to the 3-month bankers’ acceptance rate (CDOR) plus 0.71% payable quarterly in arrears on the 21st day of each of February, May, August, and November in each year, commencing on May 21, 2025.

The Offering is being done on a best efforts agency basis by a syndicate of agents led by TD Securities Inc. and National Bank Financial Inc. as co-leads and bookrunners, and consisting of BMO Capital Markets, CIBC World Markets Inc., RBC Dominion Securities Inc., Scotia Capital Inc., Industrial Alliance Securities Inc. and UBS Securities Canada Inc.

The Offering is made under the short form base shelf prospectus dated February 12, 2019, which provides for the issue of up to $2 billion principal amount of securities. Complete details of the Offering are set out in the prospectus supplement dated February 18, 2020, which will be filed with the Canadian securities regulatory authorities and will be available on SEDAR at www.sedar.com and on the Company’s website at www.ia.ca.

The Offering is expected to close on or about February 21, 2020. The net proceeds will be added to the Company’s general funds and will be used for general corporate purposes, consistent with iA Financial Corporation’s business and growth strategy.

Notice
This press release does not constitute an offer to sell or the solicitation of an offer to buy any security and shall not constitute an offer, solicitation or sale of any securities in any jurisdiction in which such offering, solicitation or sale would be unlawful.

The Debentures have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”) or the securities laws of any state of the United States of America, and may not be offered, sold or delivered, directly or indirectly, within the United States, its territories, its possessions and other areas subject to its jurisdiction or to, or for the account or benefit of, U.S. persons (as defined in Regulation S under the U.S. Securities Act), except in certain transactions exempt from, or not subject to, the registration requirements of the U.S. Securities Act and applicable state securities laws. This press release does not constitute an offer to sell or a solicitation of an offer to buy any of these securities within the United States.

Forward-looking Statements
This news release may contain statements relating to strategies used by iA Financial Group or statements that are predictive in nature, that depend upon or refer to future events or conditions, or that include words such as “may”, “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, in this news release the expected closing time of the Offering and the use of proceeds. These statements are not historical facts; they represent only expectations, estimates and projections regarding future events.

Although iA Financial Group 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: general business and economic conditions; level of competition and consolidation; changes in laws and regulations including tax laws; liquidity of iA Financial Group 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 iA Financial Group; 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 Management’s Discussion and Analysis for the year 2019 and in the “Management of Risks Associated with Financial Instruments” note to the audited consolidated financial statements for the year ended December 31, 2019, and elsewhere in iA Financial Group’s filings with Canadian securities regulators, which are available for review at sedar.com.

The forward-looking statements in this news release reflect iA Financial Group’s expectations as of the date of this document. iA Financial Group 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.