By Wendy Van Sickle
Columbus, Ohio, March 26 – Intact Financial Corp. priced C$250 million of 4.125% fixed-to-fixed rate subordinated notes due March 31, 2081, according to a news release.
The notes will bear interest at an annual rate of 4.125% until March 31, 2026 and then the interest rate will reset every five years at an annual rate equal to the Government of Canada bond yield plus 319.6 basis points.
CIBC Capital Markets, National Bank Financial Markets and TD Securities are the bookrunners.
The notes will be converted automatically into non-cumulative class A shares, series 10, of the company upon certain bankruptcy or insolvency-related events.
Proceeds will be used to fund a portion of the purchase price of the company and Try A/S’ acquisition of RSA Insurance Group plc or for general corporate purposes if the acquisition is not completed.
Intact Financial is a Toronto-based provider of property and casualty insurance in Canada and a provider of specialty insurance in North America.
Issuer: | Intact Financial Corp.
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Amount: | C$250 million
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Maturity: | March 31, 2081
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Securities: | Fixed-to-fixed rate subordinated notes
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Bookrunners: | CIBC Capital Markets, National Bank Financial Markets and TD Securities
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Coupon: | 4.125% for first five years, then fixed-rate equal to Government of Canada bond yield plus 319.6 bps
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Announcement date: | March 26
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Settlement date: | March 31
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