Sun Life Financial announces Preferred Share issue

    TORONTO, May 8 /CNW/ - Sun Life Financial Inc. (TSX, NYSE: SLF) today
announced a Canadian public offering of $200 million of Class A Non-Cumulative
5-Year Rate Reset Preferred Shares Series 6R (the "Series 6R Shares"). The
Series 6R Shares will be issued to the public at a price of $25.00 per share
and holders will be entitled to receive non-cumulative preferential fixed
quarterly dividends for the initial period ending June 30, 2014, as and when
declared by the Company's board of directors, payable in the amount of $0.375
per Preferred Share, to yield 6.0 per cent annually.
    On June 30, 2014, and every five years thereafter, the dividend rate will
reset at a rate equal to the 5-Year Government of Canada bond yield plus 3.79
per cent. Subject to certain conditions, holders may elect to convert any or
all of their Series 6R Shares into an equal number of Class A Non-Cumulative
Floating Rate Preferred Shares Series 7QR (the "Series 7QR Shares") on June
30, 2014 and on the 30th of June every fifth year thereafter. Holders of the
Series 7QR Shares will be entitled to receive non-cumulative preferential
floating rate quarterly dividends, as and when declared by the Company's board
of directors, equal to the then 3-month Government of Canada Treasury Bill
yield plus 3.79 per cent.
    The net proceeds of the offering will be used for general corporate
purposes. The offering will be underwritten by a syndicate led by TD
Securities and BMO Capital Markets on a bought deal basis, and is expected to
close on May 20th, 2009. The proceeds from this domestic public offering are
expected to qualify for tier 1 capital.
    The underwriters have been granted an option to purchase up to an
additional $50 million of the Series 6R Shares exercisable at any time up to
two business days before closing. The maximum gross proceeds raised under the
offering will be $250 million if this option is exercised in full.
    Subject to regulatory approval, Sun Life Financial Inc. may redeem the
Series 6R Shares in whole or in part on June 30, 2014 and on the 30th of June
every five years thereafter.
    An application is being made to list the Series 6R Shares as of the
closing date on the Toronto Stock Exchange.
    The Series 6R Shares have not been, and will not be, registered under the
United States Securities Act of 1933, as amended, and, subject to certain
exceptions, may not be offered, sold or delivered, directly or indirectly, in
the United States of America or for the account or benefit of U.S. persons.
This release does not constitute an offer to sell or a solicitation to buy
such securities in the United States.

    About Sun Life Financial

    Sun Life Financial is a leading international financial services
organization providing a diverse range of protection and wealth accumulation
products and services to individuals and corporate customers. Chartered in
1865, Sun Life Financial and its partners today have operations in key markets
worldwide, including Canada, the United States, the United Kingdom, Ireland,
Hong Kong, the Philippines, Japan, Indonesia, India, China and Bermuda. As of
March 31, 2009, the Sun Life Financial group of companies had total assets
under management of $375 billion. 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 ticker symbol SLF.

    Note to Editors: All figures in Canadian dollars.