Canadian Life Companies Split Corp. Raises Preferred Stock Price

TORONTO, Sept. 18, 2024 (GLOBE NEWSWIRE) — Canadian Life Companies Split Corp. (the “Company”) is pleased to announce an increase in the Preferred Share dividend rate for the new six-year term, commencing December 1, 2024. Payments will be made at the higher of 7.00% (previously 6.50%) or Prime plus 2% capped at 9.00% (previously 8.00%) based on the $10.00 redemption value. The new distribution rate represents a potential increase of $0.10 per annum over the previous maximum rate. Preferred shareholders have received a total of $11.82 per share in distributions since inception. The dividend policy for the Class A Shares remains at the current target rate of $0.10 per month or $1.20 per annum.

As previously announced on March 12, 2024, the Company will extend the maturity date by an additional six years from December 1, 2024 to December 1, 2030. In connection with the term extension and the increase in the Preferred Share rate, the Company has an additional right of withdrawal for shareholders who do not wish to continue their investment, allowing existing shareholders to tender one or both classes of shares and receive a withdrawal price based on the net asset value per unit on November 29, 2024. Alternatively, shareholders may sell their shares at any time for the market price, potentially at a higher price than would be achieved through withdrawal, or shareholders may take no action and continue to hold their shares.