Toronto – September 21, 2026 -- Sun Life Financial Inc. (TSX: SLF) (NYSE: SLF) will have 8,000,000 Class A Non-cumulative Rate Reset Preferred Shares Series 10R issued and outstanding as of September 30, 2026, after a share conversion process eliminated its floating-rate Series 11QR class entirely.
Conversion elections trigger automatic consolidation into Series 10R
Ahead of the September 16, 2026 election deadline, holders of 1,400 of Sun Life's 6,838,672 Series 10R Shares elected to convert into Series 11QR Shares on a one-for-one basis. Simultaneously, holders of 621,829 of the 1,161,328 outstanding Series 11QR Shares elected to convert back into Series 10R Shares. Because these elections would have left fewer than 1,000,000 Series 11QR Shares outstanding, Sun Life is required under the terms of the shares to automatically convert all remaining Series 11QR Shares into Series 10R Shares on September 30, 2026. As a result, holders of Series 10R Shares lose the right to convert into Series 11QR Shares, and the Series 11QR class will cease to exist with nil shares outstanding.
New quarterly dividend rate fixed at 5.519% for five-year term
The Series 10R Shares, listed on the Toronto Stock Exchange under symbol SLF.PR.H, will carry a dividend rate of 5.519% per annum, or $0.344938 per share per quarter, for the five-year period from September 30, 2026 to September 30, 2031. As announced by Sun Life on August 31, 2026, the rate was calculated as the Government of Canada Yield on August 31, 2026 plus a 2.17% spread, per the terms governing the Series 10R Shares. Dividends remain non-cumulative and subject to declaration by Sun Life's Board of Directors and the Insurance Companies Act (Canada).
Redemption option set at $25.00 per share starting 2031
Subject to regulatory approval, Sun Life retains the option to redeem all or part of the outstanding Series 10R Shares for $25.00 per share in cash, plus any declared and unpaid dividends, on September 30, 2031, and every fifth year thereafter. The Series 10R and Series 11QR Shares have not been registered under the U.S. Securities Act of 1933 and, with limited exceptions, cannot be offered, sold or delivered in the United States for the account of U.S. persons.