CI Financial announces new debenture financing
TORONTO (May 21, 2020) – CI Financial Corp. (“CI”) (TSX: CIX) announced today that it has entered into an agreement to sell debt securities with an aggregate principal amount of $450 million. The debt securities have a term of five years and carry an interest rate of 3.759% payable semi-annually.
The debentures have a provisional rating of BBB by Standard & Poor’s and BBB (high) (Under Review with Negative Implications) by DBRS.
The offering is being made under CI’s previously filed shelf prospectus dated December 17, 2019 and is being led by National Bank Financial Inc. and CIBC World Markets. CI intends to use the net proceeds from the sale of debentures primarily to repay outstanding indebtedness, including the $450 million principal amount of debentures maturing on December 7, 2020, issued by CI on December 7, 2015, and amounts owing under CI’s credit facility. The remainder of the proceeds, if any, will be used for general corporate purposes.
The closing of the offering is scheduled for May 26, 2020 and is subject to certain customary conditions.
The securities offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This news release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.
About CI Financial
CI Financial Corp. (TSX: CIX) is an independent company offering global asset management and wealth management advisory services. CI held approximately C$166 billion in fee-earning assets as of April 30, 2020. CI’s primary asset management businesses are CI Investments Inc. and GSFM Pty Ltd., and it operates in wealth management through Assante Wealth Management (Canada) Ltd., CI Private Counsel LP, WealthBar Financial Services Inc., BBS Securities Inc., One Capital Management, LLC and Surevest LLC. Further information is available at www.cifinancial.com.
This press release contains forward-looking statements with respect to CI and the offering of its debt securities, including in relation to the anticipated closing dates and use of the net proceeds of the offering. Forward-looking statements are typically identified by words such as “believe”, “expect”, “foresee”, “forecast”, “anticipate”, “intend”, “estimate”, “goal”, “plan” and “project” and similar references to future periods, or conditional verbs such as “will”, “may”, “should”, “could” or “would”. These statements are not historical facts but instead represent management beliefs regarding future events, many of which by their nature are inherently uncertain and beyond management’s control. Although management believes that the expectations reflected in such forward-looking statements are based on reasonable assumptions, such statements involve risks and uncertainties. The material factors and assumptions applied in reaching the conclusions contained in these forward-looking statements include that the investment fund industry will remain stable and that interest rates will remain relatively stable. Factors that could cause actual results to differ materially from expectations include, among other things, general economic and market conditions, including interest and foreign exchange rates, global financial markets, changes in government regulations or in tax laws, industry competition, technological developments and other factors described or discussed in CI’s disclosure materials filed with applicable securities regulatory authorities from time to time. The foregoing list is not exhaustive and the reader is cautioned to consider these and other factors carefully and not to place undue reliance on forward-looking statements. Other than as specifically required by applicable law, CI undertakes no obligation to update or alter any forward-looking statement after the date on which it is made, whether to reflect new information, future events or otherwise.
For further information:
Douglas J. Jamieson
Executive Vice-President and Chief Financial Officer
CI Financial Corp.
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