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Press release from CNW Group

Industrial Alliance Announces the Closing of an Offering of $250 Million of 4.75% Fixed/Floating Subordinated Debentures

Wednesday, December 14, 2011

Industrial Alliance Announces the Closing of an Offering of $250 Million of 4.75% Fixed/Floating Subordinated Debentures09:31 EST Wednesday, December 14, 2011QUEBEC CITY, Dec. 14, 2011 /CNW Telbec/ - Industrial Alliance Insurance and Financial Services Inc. ("Industrial Alliance" or the "Company") announced today the closing of its previously announced offering of $250 million principal amount of 4.75% fixed/floating subordinated debentures due December 14, 2021 (the "Debentures").The Debentures bear interest at a fixed annual rate of 4.75% for the first five years, payable semi-annually, and a variable annual rate equal to the 3-month Canadian Dollar Offered Rate (CDOR) plus 3.20% for the last five years, payable quarterly. Subject to prior regulatory approval, Industrial Alliance may redeem the Debentures, in whole or in part, on or after December 14, 2016. The Debentures have been rated "A" with a stable trend by DBRS Limited and "A" by Standard & Poor's.The Debentures were offered through a syndicate of dealers co-led by RBC Capital Markets and TD Securities and consisting of BMO Capital Markets, Scotia Capital, CIBC World Markets, National Bank Financial, Casgrain & Company and Industrial Alliance Securities.The Debentures were issued under an amended and restated prospectus supplement dated December 13, 2011 to the short form base shelf prospectus dated April 29, 2011. Details of the offering are set out in the amended and restated prospectus supplement which is available on the SEDAR website at www.sedar.com and on the Company website at www.inalco.com.NoticeThe Debentures have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or the securities laws of any state of the United States of America, and may not be offered, sold or delivered, directly or indirectly, within the United States, its territories, its possessions and other areas subject to its jurisdiction or to, or for the account or benefit of, U.S. persons (as defined in Regulation S under the U.S. Securities Act), except in certain transactions exempt from, or not subject to, the registration requirements of the U.S. Securities Act and applicable state securities laws. This press release does not constitute an offer to sell or a solicitation of an offer to buy any of these securities within the United States.Forward-looking StatementsThis News Release may contain statements relating to strategies used by Industrial Alliance or statements that are predictive in nature, that depend upon or refer to future events or conditions, or that include words such as "may", "will", "could", "should", "would", "suspect", "expect", "anticipate", "intend", "plan", "believe", "estimate", and "continue" (or the negative thereof), as well as words such as "objective" or "goal" or other similar words or expressions. Such statements constitute forward-looking statements within the meaning of securities laws. Forward-looking statements include, but are not limited to, information concerning the Company's possible or assumed future operating results. These statements are not historical facts; they represent only the Company's expectations, estimates and projections regarding future events.Although Industrial Alliance believes that the expectations reflected in such forward-looking statements are reasonable, such statements involve risks and uncertainties, and undue reliance should not be placed on such statements. Certain material factors or assumptions are applied in making forward-looking statements, and actual results may differ materially from those expressed or implied in such statements. Factors that could cause actual results to differ materially from expectations include, but are not limited to: general business and economic conditions; level of competition and consolidation; changes in laws and regulations including tax laws; liquidity of Industrial Alliance including the availability of financing to meet existing financial commitments on their expected maturity dates when required; and insurance risks including mortality, morbidity, longevity and policyholder behaviour including the occurrence of natural or man-made disasters, pandemic diseases and acts of terrorism. Additional information about material factors that could cause actual results to differ materially from expectations and about material factors or assumptions applied in making forward-looking statements may be found in Industrial Alliance's most recent annual report under the "Risk Management" section of the Management's Discussion and Analysis and in the "Management of Risks Associated with Financial Instruments" note to Industrial Alliance's consolidated financial statements, available for review at www.sedar.com.Industrial Alliance does not undertake to update or release any revisions to these forward-looking statements to reflect events or circumstances after the date of this News Release or to reflect the occurrence of unanticipated events, except as required by law.About Industrial AllianceFounded in 1892, Industrial Alliance Insurance and Financial Services Inc. is a life and health insurance company with operations in all regions of Canada as well as in the United States. The Company offers a wide range of life and health insurance products, savings and retirement plans, RRSPs, mutual and segregated funds, securities, auto and home insurance, mortgage loans and other financial products and services for both individuals and groups. The fourth largest life and health insurance company in Canada, Industrial Alliance contributes to the financial security of over three million Canadians, employs more than 4,000 people and manages and administers more than $70 billion in assets. Industrial Alliance stock is listed on the Toronto Stock Exchange under the ticker symbol IAG.For further information: Investor Relations Grace Pollock Office: 418 780-5945 Email: grace.pollock@inalco.com Website: www.inalco.com