Foresters Financial announces Subordinated Debentures offering
NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
(Toronto, ON, October 9, 2020) – Foresters Financial™ today announced that it intends to issue $250 million principal amount of Series 2020-1 Subordinated Unsecured 2.885% Fixed/Floating Debentures, due October 15, 2035 (the "Debentures").
The net proceeds will be used for general corporate purposes including investments in subsidiaries. The Debentures will bear interest at a fixed annual rate of 2.885% for the first ten years, payable semi-annually, and a variable rate equal to 3-Month CDOR plus 1.77% for the last five years, payable quarterly. The Debentures have been assigned a provisional rating of “A (low)” with a stable trend by DBRS Morningstar. The offering is expected to close on October 15, 2020.
The Debentures will be sold on an agency basis by a syndicate of dealers, led by BMO Nesbitt Burns Inc. and RBC Dominion Securities Inc., and which includes Goldman Sachs Canada Inc., National Bank Financial Inc., Scotia Capital Inc. and CIBC World Markets Inc. The Debentures will be issued on a private placement basis to certain accredited investors in Canada and are expected to qualify as Tier 2 capital.
The parent organization, The Independent Order of Foresters, will be the issuer of the Debentures.
About Foresters Financial
Since 1874, Foresters Financial has been providing socially responsible financial services to individuals and families. Foresters Financial includes The Independent Order of Foresters, the oldest non-denominational fraternal benefit society. Foresters is a purpose-driven organization that exists to enrich family and community well-being and offers insurance products to over three million members and clients in Canada, the U.S. and the U.K. For more information please visit foresters.com
For 20 straight years, The Independent Order of Foresters has received an “A” (Excellent) rating from A.M. Best. Foresters has also received an “A” rating from DBRS Morningstar. Foresters maintains total assets of $20.4 billion (CAD$) as at June 30, 2020 and surplus of $2.1 billion, while in-force certificates and contracts have grown to more than 2.9 million in Canada, U.S. and the U.K. Foresters solvency ratios are well above local requirements in all jurisdictions in which it operates.