(May 1 – 17:00 ET) – Investors Group Inc. has announced plans for a $960 million financing. The mutual fund company will issue $600 million worth of debentures and $360 million worth of first preferred shares.

Net proceeds of the offerings will be used to repay bank debt incurred in connection with the purchase by Investors Group of Mackenzie Financial Corp.

The offerings will each be purchased by a group of investment dealers led by BMO Nesbitt Burns Inc. for distribution to the public. The expected closing date for the issues is May 9.

The debentures are being offered in two tranches. In the first tranche, $450 million principal amount of the debentures will be dated May 9, 2001 and will mature on May 9, 2011.

These debentures will bear interest at a rate of 6.75% per annum payable semi-annually in arrears in equal instalments on May 9 and November 9 of each year, commencing Nov. 9, 2001. These debentures have been priced to provide a yield to maturity of 6.792%.

In the second tranche, $150 million principal amount of the debentures will be dated May 9, 2001 and will mature on May 9, 2031. These debentures will bear interest at a rate of 7.45% per annum payable semi-annually in arrears in equal instalments on May 9 and November 9 of each year, commencing on Nov. 9, 2001. These debentures have been priced to provide a yield to maturity of 7.495%.

The new issue of preferred shares will consist of 14.4 million Non-cumulative Preferred Shares, Series A priced at $25 a share with a dividend of 5.75% per annum.

The preferred shares will be redeemable by Investor Group for cash, at a declining premium, on and after June 30, 2009. The preferred shares will also be convertible into common shares at the option of Investors Group on or after June 30, 2009, and at the option of the holder on and after June 30, 2013, in each case at 95% of the then market price of the common shares.