A syndicate of underwriters has agreed to buy $150 million of Great-West Lifeco Inc. preferred shares on a bought-deal basis, the company said Thursday.

The underwriters, co-led by BMO Capital Markets, CIBC and Scotia Capital Inc, have agreed to buy 6 million Non-Cumulative First Preferred Shares, Series L from Great-West for sale to the public at a price of $25 per share.

Great-West has granted the underwriters an underwriters’ option to purchase an additional 4 million Series L Shares at the same offering price. Should that option be fully exercised, the total gross proceeds of the Series L Share offering will be $250 million.

The Series L Shares will yield 5.65% per year, payable quarterly. The shares will not be redeemable prior to Dec. 31, 2014.

The domestic offering is expected to close on October 2, 2009. The net proceeds will be used for general corporate purposes, Great-West Lifeco said.

IE