Sun Life resets rate on $1B Limited Recourse notes

Sun Life Financial Inc. is resetting the interest rate on its $1 billion principal amount of 3.60% Limited Recourse Capital Notes Series 2021-1 for the five-year period starting June 30, 2026.

Rhea-AI Filing Summary

Sun Life Financial Inc. is resetting the interest rate on its $1 billion principal amount of 3.60% Limited Recourse Capital Notes Series 2021-1 for the five-year period starting June 30, 2026. The new rate will be 5.614% per annum to, but excluding, June 30, 2031, calculated as the Government of Canada Yield on June 29, 2026 plus 2.604%.

Interest will continue to be paid semi-annually on June 30 and December 31, beginning December 31, 2026. The Notes, which are subordinated indebtedness, are scheduled to mature on June 30, 2081. They are backed by 1,000,000 Class A Non-Cumulative Rate Reset Preferred Shares Series 14 held in a Limited Recourse Trust, meaning holders’ recourse in a default is limited to these assets.

Insights

Credit and capital structure analyst

Sun Life resets a long-dated hybrid note coupon higher for the next five years.

The company has set a new 5.614% coupon on its $1 billion Limited Recourse Capital Notes Series 2021-1 for the period to June 30, 2031, replacing the initial 3.60% rate. The reset is formula-based, using the Government of Canada Yield plus a fixed 2.604% spread.

These Limited Recourse Capital Notes are subordinated and backed by Series 14 preferred shares held in a trust, so noteholders ultimately rely on those shares in a default. The notes are callable, with regulatory approval, in the window from May 31, 2031 to June 30, 2031 and every five years thereafter, giving the issuer periodic options to refinance.

Key Figures

Notes principal amount: $1 billion Original coupon rate: 3.60% per annum Reset coupon rate 2026–2031: 5.614% per annum +5 more

8 metrics

Notes principal amount $1 billion Limited Recourse Capital Notes Series 2021-1 principal

Original coupon rate 3.60% per annum Initial interest rate on the Notes prior to reset

Reset coupon rate 2026–2031 5.614% per annum Interest rate from June 30, 2026 to June 30, 2031

Credit spread to GoC yield 2.604% Added to Government of Canada Yield to set coupon

Maturity date June 30, 2081 Scheduled maturity of the Limited Recourse Capital Notes

Preferred shares backing notes 1,000,000 shares Class A Non-Cumulative Rate Reset Preferred Shares Series 14

Redemption window May 31, 2031 – June 30, 2031 First period when Notes may be redeemed with approval

Assets under management $1.58 trillion Total AUM as of March 31, 2026

Key Terms

Limited Recourse Capital Notes, Subordinated Indebtedness, Government of Canada Yield, Limited Recourse Trust, +1 more

5 terms

Limited Recourse Capital Notes financial

"Sun Life announces interest rate reset on Limited Recourse Capital Notes Series"

Limited recourse capital notes are debt-like securities where repayment and investor claims are restricted to the cash flows or assets tied to a specific pool, project, or collateral; holders cannot pursue the issuer’s other assets if those designated sources fail. For investors this usually means higher potential yield but greater risk—think of lending money secured only by a single rental property’s rent rather than the borrower’s entire balance sheet, so returns depend on that asset’s performance.

Subordinated Indebtedness financial

"3.60% Limited Recourse Capital Notes Series 2021-1 (Subordinated Indebtedness)"

Debt that carries lower priority for repayment than other borrowings, meaning holders are paid only after higher‑priority creditors are made whole if the borrower runs into financial trouble; think of it as standing at the back of a queue at a checkout. It matters to investors because it usually carries higher interest to compensate for greater risk, affects how much creditors recover in default, and influences a borrower’s overall credit profile and cost of borrowing.

Government of Canada Yield financial

"interest rate was calculated as the sum of the Government of Canada Yield"

The Government of Canada yield is the annual return investors receive from lending money to the Canadian federal government through its bonds and treasury notes; it’s shown as a percentage and moves as buyers and sellers trade those securities. Investors use it like a baseline interest rate—similar to a bank’s advertised savings rate—for valuing other investments, setting borrowing costs and gauging overall economic confidence, because government bonds are seen as very low-risk.

Limited Recourse Trust financial

"held by Computershare Trust Company of Canada, as trustee of Sun Life LRCN Trust (the "Limited Recourse Trust")"

prospectus supplement financial

"The Notes and the Series 14 Shares were issued under a prospectus supplement dated June 24, 2021."

A prospectus supplement is an additional document provided alongside a company's main offering details, offering updated or extra information about a specific financial product being sold. It helps investors understand the latest terms, risks, and details of the investment, similar to how an update or revision clarifies or expands on original instructions, ensuring they have current and complete information before making a decision.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What interest rate did Sun Life (SLF) set on its Limited Recourse Capital Notes for 2026–2031?

Sun Life set a 5.614% annual interest rate on its $1 billion Limited Recourse Capital Notes Series 2021-1 for the period from June 30, 2026 to June 30, 2031. The rate equals the Government of Canada Yield on June 29, 2026 plus 2.604%.

How often will Sun Life (SLF) pay interest on the Limited Recourse Capital Notes?

Interest on Sun Life’s Limited Recourse Capital Notes will be paid semi-annually in arrears on June 30 and December 31 each year. Under the new rate period, the first payment is scheduled for December 31, 2026, and this pattern continues until maturity or earlier redemption.

When do Sun Life’s Limited Recourse Capital Notes mature and when are they first redeemable?

The Limited Recourse Capital Notes are scheduled to mature on June 30, 2081. Sun Life may, with prior regulatory approval, first redeem them in whole or part from May 31, 2031 to June 30, 2031, and then on every fifth anniversary window thereafter, subject to required conditions.

What backs Sun Life’s Limited Recourse Capital Notes and what is the recourse structure?

The Notes are backed by 1,000,000 Class A Non-Cumulative Rate Reset Preferred Shares Series 14 held in a Limited Recourse Trust. If Sun Life fails to pay interest or principal when due, each noteholder’s recourse is limited to a proportionate share of these trust assets, except in limited circumstances.

How large is Sun Life’s business based on assets under management?

As of March 31, 2026, Sun Life reported $1.58 trillion in total assets under management. This figure reflects its global operations across asset management, wealth, insurance and health solutions in multiple markets, including Canada, the U.S., Europe and Asia-Pacific regions.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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Accepted by SEC EDGAR 06/29/2026 - 05:51 PM Learn about SEC filing dates

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 6-K

Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16
under the Securities Exchange Act of 1934

For the month of June 2026 Commission File Number: 001-15014

SUN LIFE FINANCIAL INC.

(Translation of registrant's name into English)

1 York Street, 31st Floor, Toronto, Ontario, M5J 0B6

(Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F ☐ Form 40-F ☒

Exhibits		Description
99.1		News Release dated June 29, 2026

SIGNATURE

Pursuant to the requirement of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. 

		Sun Life Financial Inc. (Registrant)
Date: June 29, 2026		By:		/s/ “Kevin Armitage”
				Kevin Armitage
				AVP & Managing Counsel, Corporate Legal

Exhibit 99.1

 

Sun Life announces interest rate reset on Limited Recourse Capital Notes Series

TORONTO, June 29, 2026 /CNW/ - Sun Life Financial Inc. (TSX: SLF) (NYSE: SLF) (the "Company") announced today the interest rate for its $1 billion principal amount of 3.60% Limited Recourse Capital Notes Series 2021-1 (Subordinated Indebtedness) (the "Notes") for the five-year period commencing June 30, 2026.

In accordance with the terms of the trust indenture dated June 30, 2021 (the "Indenture"), the interest rate on the Notes for the period from and including June 30, 2026, to but excluding June 30, 2031, will be 5.614% per annum.

The interest rate was calculated as the sum of the Government of Canada Yield (as defined in the Indenture) determined as at June 29, 2026, plus 2.604%. Interest on the Notes will continue to be payable semi-annually in arrears on June 30 and December 31 of each year, with the first such payment occurring on December 31, 2026.

The Notes are scheduled to mature on June 30, 2081. In connection with the issuance of the Notes, the Company issued 1,000,000 Class A Non-Cumulative Rate Reset Preferred Shares Series 14 (the "Series 14 Shares") held by Computershare Trust Company of Canada, as trustee of Sun Life LRCN Trust (the "Limited Recourse Trust"). In case of non-payment of interest on or principal of the Notes when due, the recourse of each noteholder will be limited to that holder's proportionate share of the Limited Recourse Trust's assets, which will consist of Series 14 Shares except in limited circumstances. The Notes and the Series 14 Shares were issued under a prospectus supplement dated June 24, 2021.

The Company may redeem the Notes, with the prior written approval of the Superintendent of Financial Institutions (Canada), in whole or in part, during the period from May 31, 2031 to and including June 30, 2031 and every five years thereafter, on not less than 15 nor more than 60 days' prior notice, and only upon the redemption by the Company of such number of Class A Shares Series 14 with an aggregate face amount equal to the aggregate principal amount of Notes redeemed, in accordance with the terms of such shares.

For more information, the prospectus supplement dated June 24, 2021 is available on the Company's SEDAR+ profile.

About Sun Life
Sun Life is a leading international financial services organization providing asset management, wealth, insurance and health solutions to individual and institutional Clients. Sun Life has operations in a number of markets worldwide, including Canada, the U.S., the United Kingdom, Ireland, Hong Kong, the Philippines, Japan, Indonesia, India, China, Australia, Singapore, Vietnam, Malaysia and Bermuda. As of March 31, 2026, Sun Life had total assets under management of $1.58 trillion. For more information, please visit www.sunlife.com.

Sun Life Financial Inc. trades on the Toronto (TSX), New York (NYSE) and Philippine (PSE) stock exchanges under the ticker symbol SLF.

Note to editors: All figures in Canadian dollars.

To contact Sun Life media relations, please email Media.Relations@sunlife.com.

To contact Sun Life investor relations, please email Investor_Relations@sunlife.com.

View original content to download multimedia:https://www.prnewswire.com/news-releases/sun-life-announces-interest-rate-reset-on-limited-recourse-capital-notes-series-302813707.html

SOURCE Sun Life Financial Inc. - Financial News

View original content to download multimedia: http://www.newswire.ca/en/releases/archive/June2026/29/c7342.html

%CIK: 0001097362

CO: Sun Life Financial Inc. - Financial News

CNW 17:01e 29-JUN-26

Filing Exhibits & Attachments

2 documents

Press Releases

• EX-991 NEWS RELEASE DATED JUNE 29, 2026 6.0 KB
• EX-991 PRINTER FRIENDLY VERSION 143.8 KB