The Canadian Press

Underwriters have agreed to pay $150 million to buy six million preferred shares issued by IGM Financial Inc. (TSX:IGM), part of the Power Corporation group of companies.

The Series B Shares will be priced at $25 each and will carry an annual dividend yield of 5.9%.

IGM Financial has also granted the underwriters an option to buy an additional two million Series B shares at the same price and, if that happens, the offering will result in total gross proceeds of $200 million.

IGM, one of the country’s largest mutual fund and wealth management companies, said it would use proceeds from the issue to supplement its financial resources and for general corporate purposes.

It said in a separate announcement later that it intends to redeem all $360 million of its outstanding 5.75 per cent Series A first preferred shares on Dec. 31. It will pay $26 each for the Series A preferreds.

IGM, which owns the Investors Group and Mackenzie mutual fund businesses, is part of the Montreal-based Power group of companies that includes Power Financial Corp. (TSX:PWF) and Great-West Lifeco. (TSX:GWO).

As of Oct. 31, IGM had $116 billion total assets under management.