Sun Life Assurance Issues $800M of Subordinated Debt

Sun Life Assurance Company of Canada completed, on June 25, 2002, an offering of $800 million of 20-year subordinated debt with an innovative interest deferral feature. Under the terms of the subordinated debt, Sun Life Assurance is allowed to defer interest payments in certain circumstances for up to five years. The debt has a fixed interest rate for the first 10 years and then offers 10 years of floating rates.

Sun Life Assurance was represented by in-house counsel Natalie Ochrym and William Zeyl, and by Torys LLP with a team that included Matt Cockburn, Phil Mohtadi, Paul Guthrie, David Boyko and Rima Ramchandani (corporate), Blair Keefe (regulatory) and Lucia ten Kortenaar, Tim Rorabeck and Craig Burley (tax).

McCarthy Tétrault LLP acted for the agents, Merrill Lynch Canada Inc., RBC Dominion Securities Inc., BMO Nesbitt Burns Inc., CIBC World Markets Inc., Scotia Capital Inc., TD Securities Inc., HSBC Securities (Canada) Inc. and National Bank Financial Inc., with a team that included Barry Ryan, Ed Kerwin, Jonathan Grant, Steven Kim and Tara Cutler, and Gabrielle Richards and Michael Quigley (tax).

Lawyer(s)

Lucia M. ten Kortenaar Blair W. Keefe Jonathan R. Grant Paul D. Guthrie Philip Mohtadi Timothy P. Rorabeck David W. Boyko Rima Ramchandani Craig Burley Steven R. Kim Matthew Cockburn