Published on 3/7/2022 in the Prospect News Canadian Bonds Daily and Prospect News Investment Grade Daily.
New Issue: Intact Financial sells C$100 million C$25-par preferreds to yield 5.25%
By Marisa Wong
Los Angeles, March 7 – Intact Financial Corp. priced C$100 million of non-cumulative class A preferred shares, series 11, on a bought deal basis, according to a press release.
The 4 million C$25-par shares will yield 5.25% and are non-callable for five years.
The offering includes a C$50 million greenshoe.
The syndicate of underwriters is led by TD Securities Inc. together with BMO Capital Markets, CIBC Capital Markets, National Bank Financial, RBC Capital Markets and Scotiabank.
The offering is expected to close on March 15.
Proceeds are expected to be used to help fund the full redemption of the roughly C$445 million outstanding floating-rate restricted notes issued by subsidiary RSA Insurance Group Ltd. (formerly RSA Insurance Group plc) or for general corporate purposes.
Intact is a Toronto-based property and casualty insurance and specialty insurance provider.
| Issuer: | Intact Financial Corp.
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| Amount: | C$100 million
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| Greenshoe: | C$50 million
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| Issue: | Non-cumulative class A shares, series 11, preferred shares
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| Maturity: | Perpetual
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| Underwriters: | TD Securities Inc. together with BMO Capital Markets, CIBC Capital Markets, National Bank Financial, RBC Capital Markets and Scotiabank
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| Dividend: | 5.25%
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| Price: | Par of C$25.00
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| Yield: | 5.25%
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| Call option: | Non-callable prior to March 31, 2027; in whole or in part at C$26.00 per share if redeemed on or after March 31, 2027 and prior to March 31, 2028; C$25.75 per share if redeemed on or after March 31, 2028 and prior to March 31, 2029; C$25.50 per share if redeemed on or after March 31, 2029 and prior to March 31, 2030; C$25.25 per share if redeemed on or after March 31, 2030 and prior to March 31, 2031; and C$25.00 per share if redeemed on or after March 31, 2031
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| Announcement date: | March 7
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| Closing date: | March 15
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