Intact-AXA deal moves forward

Intact completes private placement of 6.20% unsecured 50-year term notes.

Intact Financial Corporation has completed its offering of $100 million aggregate principal amount of unsecured 50-year term notes due July 8, 2061 by way of a best efforts private placement in Canada. The net proceeds from this offering will help fund the Intact-AXA deal, which is expected to close fall 2011 subject to regulatory approvals.

The notes will bear interest at the rate of 6.20% per annum payable semi-annually. CIBC and Casgrain & Company acted as joint placement agents for the private placement.

The offering is not conditional upon closing of the acquisition; if the acquisition is not completed, the net proceeds of the offering will be used for general corporate purposes.

Additionally, the notes will not be qualified for sale under the securities laws of any province or territory of Canada and may not be offered or sold directly or indirectly in Canada or to or for the benefit of any resident of Canada except pursuant to applicable prospectus exemptions, stated a media release. The securities to be offered will not be registered under the US Securities Act of 1933, and may not be offered or sold in the US.

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