Sun Life Financial's Non-Cumulative Preferred Shares Conversion Rights
Conversion Privilege Announcement by Sun Life Financial
Sun Life Financial Inc. (TSX: SLF) is actively engaging with its shareholders regarding the conversion rights of its Class A Non-Cumulative Rate Reset Preferred Shares Series 8R and Class A Non-Cumulative Floating Rate Preferred Shares Series 9QR. Recently, the company communicated its decision not to redeem these shares on the upcoming redemption date, offering shareholders a significant opportunity.
Details of the Conversion Privilege
Sun Life's holders of Series 8R Shares have the option to convert their holdings to Series 9QR Shares on a one-for-one basis, while Series 9QR Shareholders can opt to convert their shares to Series 8R Shares. This conversion option will be available on June 30, 2025. Shareholders who choose not to participate in the conversion will maintain their current share class.
Conditions for Conversion
The conversion privileges come with specific conditions. If the company identifies fewer than one million Series 8R Shares outstanding after the conversion date, those shares will automatically convert into Series 9QR Shares, and vice versa for Series 9QR Shares. This ensures that both series remain liquid and maintain investor interest, supported by a written notice from Sun Life to affected shareholders prior to this deadline.
Dividend Rates After Conversion
Sun Life intends to set the dividend rates applicable to the Series 8R and Series 9QR Shares for their respective upcoming periods. The rates will be announced in a news release prior to the conversion date. Stakeholders can anticipate the dividends applicable for the Series 8R Shares for a five-year term commencing June 30, 2025, as well as the three-month period for Series 9QR Shares starting on the same date.
Investing and Communication Protocol
Shareholders looking to act upon their right of conversion should immediately connect with their brokers or financial advisors to ensure timely execution of their options. The deadline for exercising these rights is June 16, 2025, by 5:00 p.m. (ET).
Potential for Redemption and Future Plans
Sun Life also maintains the option, pending regulatory approval, to redeem any part of the outstanding Series 8R Shares on June 30, 2030, or at five-year intervals thereafter. Similarly, the redemption of Series 9QR Shares is possible at predetermined prices depending on whether redemptions occur on scheduled dates or otherwise.
Global Operations and Financial Health
As a leading international financial services organization, Sun Life provides asset management, wealth, insurance, and health solutions globally. With a presence in multiple international markets, the company boasts total assets under management of approximately $1.55 trillion. This financial strength positions Sun Life favorably to adapt to market conditions and customer needs.
About Sun Life Financial
Sun Life is dedicated to serving a diverse client base, offering tailored financial services that meet the demands of both institutional and individual clients. Its comprehensive range of solutions includes products in insurance, investment, and health, enabling clients to effectively plan for their financial futures. Sun Life operates in markets worldwide, enhancing its capability to serve clients effectively.
Frequently Asked Questions
What are the Class A Preferred Shares Series 8R and 9QR?
These are specific types of preferred shares offered by Sun Life Financial, allowing shareholders certain rights, including the ability to convert between series.
When is the conversion opportunity available?
The conversion of Series 8R Shares to Series 9QR Shares and vice versa is available on June 30, 2025.
What happens if a shareholder does not convert their shares?
If shareholders choose not to convert, they will retain their current shares, either Series 8R or Series 9QR.
How are dividends determined for these shares?
The dividend rates for Series 8R and 9QR Shares will be announced before the conversion, influencing shareholder income accordingly.
Is there any redemption option for these shares?
Yes, Sun Life has the option to redeem these shares at specified prices, subject to regulatory approvals.
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