IGM Financial Inc.
TSX : IGM

IGM Financial Inc.

April 02, 2009 17:17 ET

IGM Financial Inc. Prices Issuance of an Offering of $375 Million of Debentures

WINNIPEG, MANITOBA--(Marketwire - April 2, 2009) -

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

IGM Financial Inc. (IGM) (TSX:IGM) announced today that it has priced the issuance of $375 million principal amount of debentures. The debentures will be offered through a group of agents to be led by BMO Capital Markets and RBC Capital Markets.

The Debentures will be dated April 7, 2009 and will mature April 8, 2019. These debentures will bear interest at a rate of 7.35% per cent per annum payable semi-annually in arrears in equal installments on April 8 and October 8 of each year, commencing on October 8, 2009. The Debentures have been priced to provide a yield to maturity of 7.358% percent.

The senior unsecured credit rating for IGM assigned by S&P is A+ and by DBRS is A (High).

The expected closing date for the issue is April 7, 2009. The net proceeds of the issue will be used for general corporate and investment purposes of IGM including the repayment by an affiliate of IGM of all or part of the outstanding $287 million bank indebtedness used to finance the acquisition of Saxon Financial Inc.

The offering will be made pursuant to a prospectus supplement to IGM's short form base shelf prospectus dated November 18, 2008. The supplement, once filed, will be available on SEDAR at www.sedar.com.

The securities offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or any applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any State in which such offer, solicitation or sale would be unlawful.

IGM Financial Inc. is one of Canada's premier personal financial services companies, and one of the country's largest managers and distributors of mutual funds and other managed asset products, with over $98 billion in total assets under management as of March 31, 2009. Its activities are carried out principally through Investors Group, Mackenzie Financial Corporation and Investment Planning Counsel. IGM Financial Inc. is a member of the Power Financial Corporation group of companies.

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