Sun Life resets interest rate on $1 billion capital notes

The updated yield follows the terms of the original 2021 trust indenture, calculated using the Government of Canada Yield plus a 2.604% spread. Investors will continue to receive semi-annual interest payments, with the first installment under the new rate scheduled for December 31, 2026. These notes, which carry a final maturity date of June 30, 2081, are structured with recourse limited to the assets of the Sun Life LRCN Trust, specifically the Series 14 Preferred Shares.

Sun Life maintains the option to redeem these notes, subject to approval from the Superintendent of Financial Institutions, during specific windows starting in May 2031. Any such redemption requires the simultaneous retirement of an equivalent aggregate amount of Series 14 Shares. The company, which oversees $1.58 trillion in assets under management, continues to trade on the Toronto, New York, and Philippine stock exchanges under the ticker symbol SLF.