IGM Financial Inc. Announces $600 Million Offering of Debentures

WINNIPEG, MANITOBA--(Marketwired - Jan. 23, 2017) -

NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES.

IGM Financial Inc. (TSX:IGM) ("IGM Financial") announced today that it has priced the issuance of $600 million principal amount of debentures. The debentures will be offered through a group of agents to be led by BMO Capital Markets and RBC Capital Markets.

The debentures are being offered in two series:

• $400 million principal amount of the debentures will be dated January 26, 2017 and will mature on January 26, 2027. These debentures will bear interest at a rate of 3.44% per annum payable semi-annually in arrears in equal installments on January 26 and July 26 of each year, beginning on July 26, 2017. The debentures have been priced to provide a yield to maturity of 3.448%.
  
• $200 million principal amount of the debentures will be dated January 26, 2017 and will mature on January 25, 2047. These debentures will bear interest at a rate of 4.56% per annum payable semi-annually in arrears in equal installments (except in respect of the initial interest payment)on January 25 and July 25 of each year, beginning on July 25, 2017. The debentures have been priced to provide a yield to maturity of 4.560%.

The offering of the debentures is expected to close on or about January 26, 2017. The net proceeds will be used by IGM Financial to assist its subsidiary, Mackenzie Financial Corporation, to finance a substantial portion of its previously announced acquisitions of a 10% equity interest and a 3.9% equity interest in China Asset Management Co., Ltd. (together, the "Acquisitions") and for general corporate purposes.

The offering will be made pursuant to a prospectus supplement to IGM Financial's short form base shelf prospectus dated November 29, 2016. The supplement, once filed, will be available on SEDAR at www.sedar.com.

The debentures offered have not been and will not be registered under the Securities Act of 1933 of the United States of America, as amended (the "U.S. Securities Act") or any state securities laws. These securities may not be offered, sold or delivered in the United States or to or for the benefit of U.S. Persons (as defined in Regulation S under the U.S. Securities Act) and this News Release does not constitute an offer to sell or a solicitation of an offer to buy the debentures within the United States.