Canadian Life Companies Split Corp. Overnight Offering Announced

Core Viewpoint - Canadian Life Companies Split Corp. is initiating an offering of Preferred Shares and Class A Shares, with the offering period ending on June 19, 2025, and expected closure around June 26, 2025, pending TSX approval [1][2]. Offering Details - The Preferred Shares will be priced at $10.55 each, yielding 6.64%, while the Class A Shares will be priced at $6.35 each, yielding 18.90% [2]. - The closing prices on June 17, 2025, were $10.71 for Preferred Shares and $6.39 for Class A Shares [2]. Dividend History - Since inception, the total dividends declared on Preferred Shares amount to $12.44 per share, and on Class A Shares, it is $9.15 per share, totaling $21.59 per unit [3]. Use of Proceeds - The net proceeds from the offering will be invested in a portfolio primarily consisting of four publicly traded Canadian life insurance companies: Great‐West Lifeco Inc., Industrial Alliance Insurance & Financial Services Inc., Manulife Financial Corporation, and Sun Life Financial Inc. [4]. Investment Objectives - For Preferred Shares, the objective is to provide fixed, cumulative preferential monthly cash dividends at a rate equal to the greater of 7.00% or Prime Rate plus 2% (capped at 9%) annually based on the $10.00 original issue price, with a return of the original issue price on or about December 1, 2030 [6]. - For Class A Shares, the objective is to provide regular monthly cash dividends as determined by the directors, with remaining amounts paid to Class A shareholders after Preferred shareholders are compensated on or about December 1, 2030 [6].