Empire Life announces $200 million offering of 3.383% Subordinated Debentures

KINGSTON, ONTARIO--(Marketwired - Dec. 9, 2016) -

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.

The Empire Life Insurance Company ("Empire Life" or "the Company") (TSX:EML.PR.A) announced today that it intends to issue in Canada, by way of private placement, $200 million principal amount of subordinated unsecured 3.383% fixed/floating debentures due December 16, 2026 (the "Debentures").

The offering is expected to close December 16, 2016. The net proceeds of the issue will be used for regulatory capital and general corporate purposes.

The Debentures will mature on December 16, 2026 and will bear interest at a fixed annual rate of 3.383% for the first five years, payable semi-annually, and a variable rate equal to the 3-Month Bankers' Acceptance Rate plus 1.95% for the last five years, payable quarterly. The Debentures have been assigned a provisional rating of "A (low)" with a stable trend by DBRS Limited.

The issue will be offered on an agency basis by a syndicate of dealers led by CIBC World Markets Inc. and which includes BMO Nesbitt Burns Inc., National Bank Financial Inc., RBC Dominion Securities Inc., Scotia Capital Inc. and TD Securities Inc.

On a pro forma basis, after giving effect to the Debenture issue, the Company estimates that, as at September 30, 2016, its solvency ratio would have increased from 213% to 239%.

Notice

The Debentures have not been and will not be registered under the United States Securities Act of 1933, as amended, or any state securities laws of any of the United States, and may not be offered, or sold or delivered directly or indirectly within the United States of America or to or for the account of U.S. persons (as such terms are defined in Regulation S under the U.S. Securities Act). This news release does not constitute an offer to sell or a solicitation to buy such securities in the United States.

Forward-Looking Statements:

This news release may contain forward-looking statements and information within the meaning of securities laws including those relating to the proposed issuances of the Debentures and expected effect on the Company's pro forma solvency ratio which are forward-looking statements and information within the meaning of securities laws. The words "may", "will", "would", "should", "could", "expects", "plans", "intends", "trends", "indications", "anticipates", "believes", "estimates", "predicts", "likely" or "potential" or the negative or other variations of these words or other comparable words or phrases, are intended to identify forward-looking statements and information. Although management believes that the expectations and assumptions on which these forward-looking statements and information are based are reasonable, undue reliance should not be placed on the forward-looking statements and information because there can be no assurance that they will prove to be correct. By their nature, forward-looking statements and information are subject to various risks and uncertainties, which could cause the actual results and expectations to differ materially from the anticipated results or expectations expressed. When relying on Empire Life's forward-looking statements and information to make decisions, investors and others should carefully consider the foregoing factors, assumptions and other uncertainties and potential events. Readers are cautioned not to place undue reliance on this forward-looking information, which is given as of the date hereof or the date indicated, and not to use this forward-looking information for anything other than its intended purpose. Empire Life undertakes no obligation to update publicly or revise any forward-looking statements and information, whether as a result of new information, future events or otherwise after the date of this document, except as required by law. Readers are also cautioned that such additional information is not exhaustive.

About Empire Life

Established in 1923 and a subsidiary of E-L Financial Corporation Limited, Empire Life provides individual and group life and health insurance, investment and retirement products to Canadians. The company's mission is to make it simple, fast and easy for Canadians to get the investment, insurance and group benefits coverage they need to build wealth, generate income and achieve financial security. As of September 30, 2016 Empire Life had total assets under management of $15.9 billion. Follow Empire Life on Twitter @EmpireLife or visit www.empire.ca for more information.