Sun Life Financial announced the interest rate on its $1 billion principal amount of 3.60% Limited Recourse Capital Notes Series 2021-1 will reset to 5.614% per annum for the five-year period starting June 30, 2026. The new rate equals the Government of Canada Yield as of June 29, 2026 plus 2.604%. Interest remains payable semi-annually on June 30 and December 31, with the first payment at the new rate on December 31, 2026. The notes mature on June 30, 2081, and the company may redeem them with regulatory approval during a window from May 31, 2031 to June 30, 2031 and every five years thereafter.
Sun Life Financial Inc.Interest rate reset on capital notes is a routine financial adjustment; no material impact on equity value.