By Cristal Cody
Tupelo, Miss., May 17 – Intact Financial Corp. priced C$250 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 two news releases on Thursday.
The company priced 8 million shares of the preferred stock at C$25.00 per share early in the day and then late in the session said that the over-allotment option of C$50 million, or 2 million shares, had been exercised, increasing the sale to 10 million preferred 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.
|
| Amount: | C$250 million, 10 million shares (includes exercise of greenshoe)
|
| Greenshoe: | C$50 million, 2 million shares
|
| Maturity: | Perpetual
|
| Securities: | Series 7 non-cumulative class A preferred shares
|
| Bookrunner: | TD Securities Inc.
|
| Co-managers: | BMO Capital Markets Corp., CIBC World Markets Inc. and National Bank Financial Inc.
|
| 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
|
| Price: | C$25.00 per share
|
| Pricing date: | May 17
|
| Settlement date: | May 29
|
| Rating: | DBRS: Pfd-2
|
| Distribution: | Canada
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