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IGM Financial Inc. Announces $250 Million Offering of Debentures

T.IGM

Canada NewsWire

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

WINNIPEG, March 18, 2019 /CNW/ - IGM Financial Inc. (TSX:IGM) ("IGM Financial") announced today that it has priced the issuance of $250 million principal amount of debentures. The debentures will be offered through a group of agents led by BMO Capital Markets and RBC Capital Markets.

IGM Financial Inc. (CNW Group/IGM Financial Inc.)

The debentures will be dated March 20, 2019 and will mature on March 21, 2050. These debentures will bear interest at a rate of 4.206% per annum payable semi-annually in arrears in equal installments (except in respect of the initial interest payment) on March 21 and September 21 of each year, beginning on September 21, 2019. The debentures have been priced to provide a yield to maturity of 4.206%.

The offering of the debentures is expected to close on or about March 20, 2019. The net proceeds will be used by IGM Financial to fund the intended redemption of all six million of its issued and outstanding 5.90% Non-Cumulative First Preferred Shares, Series B (the "Series B Preferred Shares") and for general corporate purposes. Following closing of the offering, IGM Financial intends to issue a notice to redeem the Series B Preferred Shares on or about April 30, 2019. In accordance with the terms of the Series B Preferred Shares, the redemption price will be $25.00 for each Series B Preferred Share plus an amount equal to all declared and unpaid dividends, net of any tax required to be withheld by IGM Financial.

The debenture offering will be made pursuant to a prospectus supplement to IGM Financial's short form base shelf prospectus dated November 23, 2018. The prospectus supplement, once filed, will be available on SEDAR at www.sedar.com.

The debentures offered have not been and will not be registered under the Securities Act of 1933 of the United States of America, as amended (the "U.S. Securities Act") or any state securities laws. These securities may not be offered, sold or delivered in the United States or to or for the benefit of U.S. Persons (as defined in Regulation S under the U.S. Securities Act) and this News Release does not constitute an offer to sell or a solicitation of an offer to buy the debentures within the United States.

About IGM Financial

IGM Financial 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 approximately $158 billion in total assets under management as of February 28, 2019. Its activities are carried out principally through IG Wealth Management, Mackenzie Investments and Investment Planning Counsel.

A MEMBER OF THE POWER FINANCIAL CORPORATION GROUP OF COMPANIES.

Forward Looking Statements

Certain statements in this Release, other than statements of historical fact, are forwardlooking statements based on certain assumptions and reflect IGM Financial's current expectations. Forwardlooking statements are provided to assist the reader in understanding IGM Financial's financial position and results of operations as at and for the periods ended on certain dates and to present information about management's current expectations and plans relating to the future. Readers are cautioned that such statements may not be appropriate for other purposes. These statements may include, without limitation, statements regarding the operations, business, financial condition, expected financial results, performance, prospects, opportunities, priorities, targets, goals, ongoing objectives, strategies and outlook of IGM Financial, the expected closing date of the offering, IGM Financial's intention to redeem the Series B Preferred Shares, as well as the outlook for North American and international economies, for the current fiscal year and subsequent periods. Forwardlooking statements include statements that are predictive in nature, depend upon or refer to future events or conditions, or include words such as "expects", "anticipates", "plans", "believes", "estimates",  "seeks", "intends", "targets", "projects", "forecasts" or negative versions thereof and other similar expressions, or future or conditional verbs such as "may", "will", "should", "would" and "could".

This information is based upon certain material factors or assumptions that were applied in drawing a conclusion or making a forecast or projection as reflected in the forwardlooking statements, including the perception of historical trends, current conditions and expected future developments, as well as other factors that are believed to be appropriate in the circumstances.   While IGM Financial considers these assumptions to be reasonable based on information currently available to management, they may prove to be incorrect.

By its nature, this information is subject to inherent risks and uncertainties that may be general or specific and which give rise to the possibility that expectations, forecasts, predictions, projections or conclusions will not prove to be accurate, that assumptions may not be correct and that objectives, strategic goals and priorities will not be achieved.

A variety of material factors, many of which are beyond IGM Financial's and its subsidiaries' control, affect the operations, performance and results of IGM Financial, and its subsidiaries, and their businesses, and could cause actual results to differ materially from current expectations of estimated or anticipated events or results. These factors include, but are not limited to: the impact or unanticipated impact of general economic, political and market factors in North America and internationally, interest and foreign exchange rates, global equity and capital markets, management of market liquidity and funding risks, changes in accounting policies and methods used to report financial condition (including uncertainties associated with critical accounting assumptions and estimates), the effect of applying future accounting changes, operational and reputational risks, business competition, technological change, changes in government regulations and legislation, changes in tax laws, unexpected judicial or regulatory proceedings, catastrophic events, IGM Financial's ability to complete strategic transactions, integrate acquisitions and implement other growth strategies, and IGM Financial's and its subsidiaries' success in anticipating and managing the foregoing factors.

The reader is cautioned that the foregoing list is not exhaustive of the factors that may affect any of IGM Financial's forwardlooking statements. The reader is also cautioned to consider these and other factors, uncertainties and potential events carefully and not place undue reliance on forwardlooking statements.

Other than as specifically required by applicable Canadian law, IGM Financial undertakes no obligation to update any forwardlooking statements to reflect events or circumstances after the date on which such statements are made, or to reflect the occurrence of unanticipated events, whether as a result of new information, future events or results, or otherwise.

Additional information about the risks and uncertainties of IGM Financial's business and material factors or assumptions on which information contained in forwardlooking statements is based is provided in its disclosure materials filed with the securities regulatory authorities in Canada, available at www.sedar.com.

SOURCE IGM Financial Inc.

View original content to download multimedia: http://www.newswire.ca/en/releases/archive/March2019/18/c6010.html



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