Canadian Life Companies Split Corp.

Canadian Life Companies Split Corp.

March 07, 2005 14:19 ET

Initial Public Offering-Canadian Life Companies Split Corp.


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: CANADIAN LIFE COMPANIES SPLIT CORP.

MARCH 7, 2005 - 14:19 ET

Initial Public Offering-Canadian Life Companies Split
Corp.

TORONTO, ONTARIO--(CCNMatthews - March 7, 2005) - Canadian Life
Companies Split Corp. ("CLC Split") is pleased to announce the filing of
a preliminary prospectus for a proposed offering, which offers Class A
Shares and Preferred Shares.

CLC Split's Class A Shares offer regular monthly cash dividends
initially targeted to be 8% per annum, with the objective of repaying
their original issue price upon termination. The Class A shares will
also provide holders with any capital appreciation or dividend growth
achieved in the investment portfolio.

CLC Split's Preferred Shares offer fixed, cumulative preferential
monthly cash dividends at a yield of 5.25% per annum, with the objective
of repaying their original issue price upon termination.

The net proceeds from the proposed offering will be used by CLC Split to
invest in a portfolio of four publicly traded Canadian life insurance
companies as follows:

Great-West Life

Industrial Alliance

Manulife Financial

Sun Life Financial

Shares held within the Portfolio are expected to range between 10-30% in
weight but may vary from time to time.

To generate additional returns above the dividend income earned on the
portfolio, CLC Split will write a selective amount of covered call
options on approximately 25% of the securities in the portfolio.

Shares of CLC Split can be purchased by cash or through an exchange
option with a tax-free rollover (see prospectus for details).

CIBC and RBC Capital Markets are co-lead agents for the proposed
offering. The other members of the syndicate are BMO Nesbitt Burns Inc.,
TD Securities Inc., Desjardins Securities Inc., HSBC Securities (Canada)
Inc., Canaccord Capital Corporation, Dundee Securities Corporation,
Raymond James Ltd, Bieber Securities Inc., First Associates Investments
Inc., Richardson Partners Financial Limited and Wellington West Capital
Inc.

Please visit the Canadian Life Companies Split Corp. website at
www.lifesplit.com.

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