Sun Life 2015 Annual Report Download - page 78

On June 30, 2015, 6.0 million Series 8R Shares of SLF Inc. were converted into Series 9QR Shares of SLF Inc. through a shareholder
option, on a one-for-one basis. After the conversion, 5.2 million Series 8R Shares and 6.0 million Series 9QR Shares were outstanding.
For additional information, refer to Note 16 of our Annual Consolidated Financial Statements.
On September 25, 2015, SLF Inc. issued $500 million principal amount of Series 2015-1 Subordinated Unsecured 2.60% Fixed/
Floating Debentures due 2025. The net proceeds will be used to partially fund the acquisition of Assurant EB and may also be used for
general corporate purposes.
On November 23, 2015, SLF Inc. redeemed all of the outstanding $600 million principal amount of the Series A Senior Debentures due
2035 in accordance with the terms of the Series A Senior Debentures.
On December 15, 2015, the US$150 million principal amount of Subordinated Unsecured 7.25% Debentures due 2015 issued by Sun
Canada Financial Company matured and was repaid.
As at December 31, 2015, our debt capital consisted of $2.5 billion in subordinated debentures and $0.7 billion of innovative capital
instruments. The maturity dates of our long-term debt are well distributed over the medium- to long-term horizon to maximize our
financial flexibility and to minimize refinancing requirements within a given year.
The table below provides the earliest par call and maturity dates for our subordinated debt, innovative capital instruments and preferred
shares outstanding as at December 31, 2015.
Description
Interest
Rate
Earliest Par Call
Date(1) Maturity
Principal/
Face Amount
($ millions)
Subordinated Debt Issued by Sun Life Assurance
6.30% Debentures, Series 2 6.30% n/a 2028 150
Subordinated Debt Issued by SLF Inc.
Series 2007-1 5.40% May 29, 2037 2042 400
Series 2008-1 5.59% January 30, 2018 2023 400
Series 2012-1 4.38% March 2, 2017 2022 800
Series 2014-1 2.77% May 13, 2019 2024 250
Series 2015-1 2.60% September 25, 2020 2025 500
Trust Units Issued by Sun Life Capital Trust
SLEECS – Series B 7.09% June 30, 2032 Perpetual 200
Debt Securities Issued by Sun Life Capital Trust II
SLEECS – Series 2009-1 5.86% December 31, 2019 2108 500
Class A Preferred Shares Issued by SLF Inc.
Series 1 4.75% March 31, 2014 Perpetual 400
Series 2 4.80% September 30, 2014 Perpetual 325
Series 3 4.45% March 31, 2015 Perpetual 250
Series 4 4.45% December 31, 2015 Perpetual 300
Series 5 4.50% March 31, 2016 Perpetual 250
Series 8R(2) 2.275% June 30, 2020 Perpetual 130
Series 9QR(3) Floating June 30, 2020 Perpetual 150
Series 10R(4) 3.90% September 30, 2016 Perpetual 200
Series 12R(5) 4.25% December 31, 2016 Perpetual 300
(1) The earliest date on which the Company has the option, but not the obligation, to call securities for redemption at their par value.
(2) On June 30, 2020, and every five years thereafter, the annual dividend rate will reset to an annual rate equal to the 5-year Government of Canada bond yield plus 1.41%.
Holders of the Series 8R Shares will have the right, at their option, to convert their Series 8R Shares into Series 9QR Shares on June 30, 2020, and every five years
thereafter.
(3) Holders of Series 9QR Shares will be entitled to receive quarterly floating rate non-cumulative dividends at an annual rate equal to the then 3-month Government of Canada
treasury bill yield plus 1.41%. Holders of the Series 9QR Shares will have the right, at their option, to convert their Series 9QR Shares into Series 8R Shares on June 30,
2020, and on June 30 every five years thereafter.
(4) On September 30, 2016, and every five years thereafter, the annual dividend rate will reset to an annual rate equal to the 5-year Government of Canada bond yield plus
2.17%. Holders of the Series 10R Shares will have the right, at their option, to convert their Series 10R Shares into Class A Non-Cumulative Floating Rate Preferred Shares
Series 11QR (“Series 11QR Shares”) on September 30, 2016, and every five years thereafter. Holders of Series 11QR Shares will be entitled to receive quarterly floating rate
non-cumulative dividends at an annual rate equal to the then 3-month Government of Canada treasury bill yield plus 2.17%.
(5) On December 31, 2016, and every five years thereafter, the annual dividend rate will reset to an annual rate equal to the 5-year Government of Canada bond yield plus
2.73%. Holders of the Series 12R Shares will have the right, at their option, to convert their Series 12R Shares into Class A Non-Cumulative Floating Rate Preferred Shares
Series 13QR (“Series 13QR Shares”) on December 31, 2016, and every five years thereafter. Holders of Series 13QR Shares will be entitled to receive quarterly floating rate
non-cumulative dividend at an annual rate equal to the then 3-month Government of Canada treasury bill yield plus 2.73%.
76 Sun Life Financial Inc. Annual Report 2015 Management’s Discussion and Analysis