Intact Financial plans to bring notes, preferreds to fund AXA purchase

By Susanna Moon

Chicago, May 31 - Intact Financial Corp. plans to issue medium-term notes and preferred shares in connection with its proposed acquisition of AXA Canada.

The company signed a definitive agreement with AXA Group to acquire its affiliate home, auto and business insurance company for C$2.6 billion in cash, according to a company press release.

Intact plans to finance the acquisition by using C$500 million of excess capital, issuing C$800 million of equity through a bought-deal subscription receipt offering and by tapping C$1.3 billion of committed senior credit facilities underwritten by CIBC, which are expected to be partly replaced by the issuance of the notes and preferreds.

Intact is a Toronto-based provider of automobile, home and business insurance in Canada.

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