Crown Life completes issue of $150 million in convertible subordinated debentures.REGINA, Saskathcewan--(BUSINESS WIRE)--Aug. 1, 1995--Crown Life Insurance Co. Tuesday announced that it has completed its Rights Offering of convertible subordinated debentures subordinated debenture An unsecured bond with a claim to assets that is subordinate to all existing and future debt. Thus, in the event that the issuer encounters financial difficulties and must be liquidated, all other claims must be satisfied before announced on March 24. Rights in respect of a total of $150 million in debentures were exercised when the Rights expired on July 31. The company has issued $75 million of Series A Convertible Subordinated Debentures and $75 million of Series B Convertible Subordinated Debentures. The Debentures mature on July 31, 2094 and July 31, 2030, respectively, and bear interest at a rate equivalent to the yield on 90 day bankers' acceptances A bankers' acceptance, or BA, is a time draft drawn on and accepted by a bank. Before acceptance, the draft is not an obligation of the bank; it is merely an order by the drawer to the bank to pay a specified sum of money on a specified date to a named person or to the plus 1.05 percent, payable semi-annually. The Debentures are convertible into common shares until July 31, 2005 at a conversion price of $65 per share. The interest rate on the Debentures for the three month period commencing July 31, 1995 has been set at 8.00 percent. "These Debentures provide regulatory capital to support the future growth of Crown Life," said Brian A. Johnson, president and chief executive officer. Crown Life's capital ratio, i.e. the ratio of debentures, capital and deferred equity gains to liabilities, is now 12 percent. This is stronger than the average of 11.8 percent for its largest Canadian competitors in the life insurance industry at the latest year-end. Crown Life is Canada's ninth largest life insurer, operating in North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. and selected international markets. Now in its 95th year of operation, the company provides life insurance, health insurance, and pension programs to individuals and groups, and reinsurance The contract made between an insurance company and a third party to protect the insurance company from losses. The contract provides for the third party to pay for the loss sustained by the insurance company when the company makes a payment on the original contract. services to other insurance companies. CONTACT: Crown Life Insurance Co., Regina Alan M. Rowe, Senior/VP and CFO See Chief Financial Officer. , 306/751 6770 INDUSTRY KEYWORD: INSURANCE REPEATS: New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of 212-575-8822 or 800-221-2462; Boston 617-330-5311 or |
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