Canada Life Financial Corp. today announced that Canada Life Capital Trust, a trust established by The Canada Life Assurance Co., has entered into an agreement with a syndicate of underwriters lead by Merrill Lynch Canada Inc. to issue in Canada, $450 million of Canada Life Capital Securities (CLiCS). The offering consists of $300 million CLiCS – Series A and $150 million CLiCS – Series B.

The CLiCS – Series A have an expected term of 10 years and carry an annual coupon of 6.68%, payable semi-annually. The CLiCS – Series B have an expected term of 30 years and carry an annual coupon of 7.53%, payable semi- annually.

Canada Life Assurance and its affiliates will use the net proceeds, expected to be $445 million, for general corporate purposes. Complete details of the terms of the CLiCS are set out in Canada Life Capital Trust’s final prospectus, filed with Canadian securities regulatory authorities.

The CLiCS issue will provide Canada Life with tax deductible, low-cost funding that, subject to the approval of the Office of the Superintendent of Financial Institutions, will constitute Tier 1 regulatory capital of Canada Life Assurance and Canada Life Financial.

“The coupons achieved on these securities are very attractive in the context of historical interest rates and we’re particularly pleased that we were able to obtain 30 year capital given the current issuer-friendly rate environment,” said Patrick Crowley, executive vice president and CFO.