Sun Life Financial Inc. announced a domestic public offering Tuesday of $300 million of Class A noncumulative preferred shares with an option to issue up to an additional $100 million of preferred.
The shares are to be priced at $25 and pay noncumulative quarterly dividends of $0.297 per share, yielding 4.75% annually. Subject to regulatory approval, on or after March 31, 2010, the Toronto insurer may redeem the preferred shares in whole or in part at a declining premium.
The shares are intended to give Sun Life an attractive source of low-cost capital, the company said, and the net proceeds will be used for general business purposes.
Sun Life Financial is an international financial services company that sells a range of wealth accumulation and protection products and services to individuals and corporate customers.
