CI Financial Corp. Announces Private Offering of U.S. Dollar Notes
May 21 2024 - 8:12AM
Business Wire
CI Financial Corp. (“CI” or the “Company”) (TSX: CIX) today
announced that it intends, subject to market and other conditions,
to offer and sell (the “Offering”) in a private placement to
eligible purchasers a series of its senior unsecured
U.S.-dollar-denominated notes (the “Notes”).
Concurrently with the Offering, CI commenced a tender offer (the
“Tender Offer”) to purchase for cash any and all of its outstanding
4.100% Notes due 2051 (the “2051 Notes”). The Tender Offer is being
made only by and pursuant to the terms of the related Offer to
Purchase. CI’s purchase of the 2051 Notes in the Tender Offer is
conditioned upon, among other things, CI’s receipt of aggregate
gross proceeds from the Offering on terms satisfactory to CI, which
are sufficient in CI’s sole discretion to effect the repurchase of
the 2051 Notes validly tendered and accepted for purchase pursuant
to the Tender Offer. The Offering is not conditioned upon the
consummation of the Tender Offer.
CI intends to use a specified portion of the net proceeds from
the Offering to finance the repurchase of the 2051 Notes in
connection with the Tender Offer, and to pay related transaction
fees and expenses, including up to an estimated US$40.0 million of
potential cash tax expense payable in connection with the early
retirement of the 2051 Notes, assuming the tender of all
outstanding 2051 Notes in the Tender Offer. CI intends to use the
remaining proceeds from the Offering for general corporate
purposes, which may include repurchases and/or repayments of
certain of its other existing indebtedness and potential future
repurchases of its common shares. To the extent that the 2051 Notes
are not purchased in the Tender Offer, CI intends to use the
portion of the net proceeds intended to be used to retire 2051
Notes solely for other repurchases and/or repayments of its
existing indebtedness.
The Notes have not been and will not be registered under the
U.S. Securities Act of 1933, as amended (the “Securities Act”), or
the securities laws of any state or other jurisdiction, including
Canada, and may not be offered or sold in the United States or
Canada absent registration or an applicable exemption from such
registration requirements. The Notes will be offered in the United
States only to persons reasonably believed to be qualified
institutional buyers in reliance on the exemption from registration
set forth in Rule 144A under the Securities Act and outside the
United States, including on a private placement basis in Canada to
“accredited investors” who are not individuals and are “permitted
clients” under applicable Canadian securities laws, in reliance on
the exemption from registration set forth in Regulation S under the
Securities Act.
This press release does not and shall not constitute an offer to
sell, or the solicitation of an offer to buy, any securities, nor
shall there be any offer, solicitation or sale in any state or
jurisdiction in which such an offer, solicitation or sale would be
unlawful. This press release does not constitute an offer to
purchase or the solicitation of an offer to sell any 2051 Notes in
the Tender Offer.
About CI Financial Corp.
CI is a diversified global asset and wealth management company
operating primarily in Canada, the United States and Australia.
Founded in 1965, CI has developed world-class portfolio management
talent, extensive capabilities in all aspects of wealth planning
and a comprehensive product suite. CI manages, advises on and
administers approximately $467.9 billion in client assets (as at
April 30, 2024).
CI operates in three segments:
- Asset Management, which includes CI Global Asset Management,
which operates in Canada, and GSFM, which operates in
Australia.
- Canadian Wealth Management, which includes the operations of CI
Assante Wealth Management, Aligned Capital Partners, CI Private
Wealth, Northwood Family Office, Coriel Capital, CI Direct
Investing and CI Investment Services.
- U.S. Wealth Management, which includes Corient Private Wealth,
an integrated wealth management firm providing comprehensive
solutions to ultra-high-net-worth and high-net-worth clients across
the United States.
CI is headquartered in Toronto and listed on the Toronto Stock
Exchange (TSX: CIX).
Forward-Looking Statements
This press release contains forward-looking statements
concerning anticipated future events, results, circumstances,
performance or expectations with respect to CI and its products and
services, including its business operations, strategy and financial
performance and condition. Forward-looking statements are typically
identified by words such as “believe”, “expect”, “foresee”,
“forecast”, “anticipate”, “intend”, “estimate”, “goal”, “plan” and
“project” and similar references to future periods, or conditional
verbs such as “will”, “may”, “should”, “could” or “would”. These
statements are not historical facts but instead represent
management beliefs regarding future events, many of which by their
nature are inherently uncertain and beyond management’s control. In
particular, these statements include, without limitation,
statements about the Offering, the intended use of proceeds from
the Offering and the Tender Offer.
Although management believes that the expectations reflected in
such forward-looking statements are based on reasonable
assumptions, such statements involve risks and uncertainties. The
material factors and assumptions applied in reaching the
conclusions contained in the forward-looking statements include
that asset levels will remain stable. The foregoing list is not
exhaustive and the reader is cautioned to consider these and other
factors carefully and not to place undue reliance on
forward-looking statements. Other than as specifically required by
applicable law, CI undertakes no obligation to update or alter any
forward-looking statement after the date on which it is made,
whether to reflect new information, future events or otherwise.
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version on businesswire.com: https://www.businesswire.com/news/home/20240520111788/en/
Investor Relations Jason Weyeneth, CFA Vice-President,
Investor Relations & Strategy 416-681-8779 jweyeneth@ci.com
Media Relations Canada Murray Oxby Vice-President,
Corporate Communications 416-681-3254 moxby@ci.com
United States Jimmy Moock Managing Partner, StreetCred
610-304-4570 jimmy@streetcredpr.com ci@streetcredpr.com
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