Intact-AXA deal update

Intact announces $300 million medium term note offering.

Intact Financial Corporation (IFC) intends to issue $300 million principal amount of unsecured medium term notes (the “Notes”).  The Notes will be direct unsecured obligations of IFC and will rank equally with all other unsecured and unsubordinated indebtedness of IFC.  The Notes will bear interest at a fixed annual rate of 4.70% until maturity on August 18, 2021, stated a media release.

IFC intends to use the net proceeds of the offering, together with borrowings under acquisition credit facilities previously arranged by IFC, the proceeds of a previously announced subscription receipt offering, the net proceeds from a previously announced private placement of medium term notes, the net proceeds of two previously announced preferred share offerings and a portion of IFC’s existing cash resources, to fund the purchase price for its previously announced acquisition of all of the issued and outstanding shares of AXA Canada (the “Acquisition”).

The closing of the Acquisition is expected to occur in the fall of 2011 subject to receipt of required competition and insurance regulatory approvals and the satisfaction of certain closing conditions. The offering is not conditional upon closing of the Acquisition; if the Acquisition is not completed, the net proceeds will be used for general corporate purposes, added the release.

The Notes, offered on a best efforts basis through a syndicate led by CIBC World Markets Inc., RBC Dominion Securities Inc. and TD Securities Inc., are expected to be issued on August 18, 2011.

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