#Canada #Toronto #Sun Life #Series 8R #Series 9QR

Sun Life Financial Announces Preferred Share Conversion Options

On May 15, 2025, Sun Life Financial Inc. (TSX: SLF, NYSE: SLF) made a noteworthy announcement regarding its Class A Non-Cumulative Rate Reset Preferred Shares Series 8R and Class A Non-Cumulative Floating Rate Preferred Shares Series 9QR. The company declared that it will not exercise its right to redeem these shares, providing holders with pivotal conversion rights.

Important Conversion Details

Holders of the Series 8R Shares will have the opportunity to convert their shares into Series 9QR Shares on a one-for-one basis, while holders of Series 9QR Shares may similarly convert their holdings into Series 8R Shares. This conversion option is significant as it allows investors to tailor their holdings based on changing market conditions and personal financial strategies, with the conversion date set for June 30, 2025.

However, it is essential to acknowledge the conditions tied to these conversions. If Sun Life determines that less than one million shares of either series remain outstanding following the conversion, an automatic conversion will take place. This automatic adjustment ensures liquidity and keeps the share structure stable, but it is imperative for investors to be aware of these stipulations to avoid unintended outcomes.

Upcoming Dividend Rate Announcements

Moreover, on May 30, 2025, Sun Life will announce the applicable dividend rates for the Series 8R and Series 9QR Shares for their respective upcoming periods. For the Series 8R Shares, the rate will cover the five-year period starting June 30, 2025, while the Series 9QR Shares will have a rate for the three-month interval ending September 29, 2025. Market participants should monitor these announcements closely, as they will greatly influence the investment decisions of existing and prospective shareholders.

The deadlines for conversion are also critical: shareholders wishing to exercise their rights must act by 5 p.m. (ET) on June 16, 2025. It is highly recommended that these shareholders coordinate with their financial institutions to ensure all necessary actions are completed within the required timeframe.

Future Redemption Options

Sun Life outlined its potential future redemption plans for both share classes. The company retains the option to redeem Series 8R Shares at $25.00 per share, plus any unpaid dividends, on June 30, 2030, and every five years thereafter. For Series 9QR Shares, the redemption also stands at $25.00 for specified dates, with slightly higher cash redemptions on other dates ($25.50). These redemptions will proceed subject to regulatory approvals, providing an extra layer of assurance for investors.

Global Reach and Financial Strength

As a leading global financial services organization, Sun Life operates in numerous markets including Canada, the U.S., the U.K., Ireland, Asia, and Australia, boasting total assets under management exceeding $1.55 trillion as of March 31, 2025. This strong financial position empowers Sun Life to implement strategic share management policies that benefit both the company and its investors.

In summary, the recent announcement regarding the conversion of preferred shares reflects Sun Life's commitment to maintaining flexibility and transparency for its shareholders. Investors are encouraged to stay informed and actively manage their holdings based on the evolving landscape presented in these announcements. For additional information, please visit sunlife.com.