Empire Life closes offering of limited recourse capital notes offering

On February 17, 2021, The Empire Life Insurance Company ("Empire Life") announced the closing of its offering of C$200 million aggregate principal amount of 3.625% limited recourse capital notes, Series 1 (Subordinated Indebtedness).

The offering was conducted on an agency basis by a syndicate of dealers co-led by Scotiabank, CIBC Capital Markets and RBC Capital Markets, as joint bookrunners and co-lead managers, along with BMO Capital Markets, National Bank Financial Markets and TD Securities, as co-managers.

In connection with the issuance of the notes, Empire Life issued non-cumulative 5-Year fixed rate reset preferred shares, Series 5 to be held by Computershare Trust Company of Canada as trustee for a newly-formed trust (the "Limited Recourse Trust"). In case of non-payment of interest on or principal of the notes when due, the recourse of each note holder will be limited to that holder's proportionate share of the Limited Recourse Trust's assets, which will consist of the preferred shares except in limited circumstances.

The net proceeds from the sale will be used for general corporate purposes and to redeem Empire Life's outstanding non-cumulative rate reset preferred shares, Series 1, expected to occur on April 17, 2021, subject to a formal notice being delivered.

Further information can be found on Canada Newswire’s website.

Empire Life is a subsidiary of E-L Financial Corporation Limited. Its mission is to make it simple, fast and easy for Canadians to get the investment, insurance and group benefits coverage they need to build wealth, generate income and achieve financial security. As of September 30, 2020, Empire Life had total assets under management of C$18.2 billion.