Guelph, Ont.-based Co-operators General Insurance Co. has closed its domestic bought deal offering of $100 million of Non-Cumulative 5-Year Rate Reset Class E Preference Shares, Series D, the company said Friday.

On May 7, a syndicate of underwriters agreed to purchase from Co-operators General and sell to the public 4 million Series D Preference Shares at a price of $25 per Series D Preference Share for gross proceeds of $100 million.

The net proceeds of the offering will be used for general corporate purposes, the company says.

The Series D Preference Shares initially yield 7.25% per year, payable quarterly. On June 30, 2014 and on June 30 every five years thereafter, the dividend rate will reset to be equal to the then current five-year Government of Canada bond yield plus 5.21%.

Holders of the Series D Preference Shares have the right to convert their shares into Non-Cumulative Floating Rate Class E Preference Shares, Series E, on June 30, 2014 and on June 30 every five years thereafter.

The Series D Preference Shares are not redeemable prior to June 30, 2014. On June 30, 2014 and on June 30 every five years thereafter, Co-operators General may redeem all or any part of the Series D Preference Shares at a cash redemption price per share of $25 together with all declared and unpaid dividends.

The Series D Preference Shares trade on the Toronto Stock Exchange under the symbol “CCS.PR.D”.

The offering was underwritten by a syndicate of underwriters co-led by Scotia Capital Inc. and TD Securities Inc. and including BMO Nesbitt Burns Inc., RBC Dominion Securities Inc., Desjardins Securities Inc., National Bank Financial Inc., HSBC Securities (Canada) Inc., Blackmont Capital Inc., Dundee Securities Corp. and Industrial Alliance Securities Inc.

IE