By Cristal Cody
Tupelo, Miss., May 17 – Intact Financial Corp. priced C$200 million of non-cumulative class A rate reset preferred shares (//DBRS: Pfd-2) with a 4.9% annual dividend for the initial fixed-rate period ending June 30, 2023, according to a news release on Thursday.
Intact Financial sold 8 million shares of the preferred stock at C$25.00 per share.
The deal includes an over-allotment option of C$50 million, or 2 million shares.
The dividend rate will reset June 30, 2023 and every five years thereafter at a rate equal to the five-year Government of Canada bond yield plus 255 basis points.
TD Securities Inc. was the bookrunner and lead manager.
Series 7 preferred shareholders will have the right to convert their shares into series 8 non-cumulative floating-rate class A shares on June 30, 2023 and on June 30 every five years thereafter. Series 8 preferred holders will be entitled to receive floating-rate dividends at a rate equal to the 90-day Canadian Treasury bill rate plus 255 bps.
Proceeds will be used for general corporate purposes.
Intact Financial is a property and casualty insurance company based in Toronto.
| Issuer: | Intact Financial Corp.
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| Amount: | C$200 million, 8 million shares
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| Greenshoe: | C$50 million, 2 million shares
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| Maturity: | Perpetual
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| Securities: | Series 7 non-cumulative class A preferred shares
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| Bookrunner: | TD Securities Inc.
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| Co-managers: | BMO Capital Markets Corp., CIBC World Markets Inc. and National Bank Financial Inc.
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| Dividend: | 4.9%; resets June 30, 2023 and every five years thereafter at rate equal to five-year Government of Canada bond yield plus 255 bps
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| Price: | C$25.00 per share
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| Pricing date: | May 17
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| Settlement date: | May 29
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| Rating: | DBRS: Pfd-2
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| Distribution: | Canada
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