Intact Financial completes C$300 million limited recourse capital notes offering
On March 7, 2023, Intact Financial Corporation ("Intact") announced the completion of its previously announced offering, by way of a private placement, of C$300 million principal amount of 7.338% limited recourse capital notes Series 1 (subordinated indebtedness), due June 30, 2083.
The notes were offered through a syndicate co-led by CIBC Capital Markets and TD Securities.
In connection with the issuance of the notes, Intact issued 300,000 non-cumulative rate reset Class A preferred shares, Series 12 to be held by Computershare Trust Company of Canada, as trustee of a newly formed trust. In case of non-payment of interest on, or the principal or redemption price of, the recourse of each noteholder will be limited to that holder's proportionate share of the limited recourse trust's assets, which will consist of Series 12 shares except in limited circumstances.
The net proceeds from the private placement are expected to be used by Intact
- in order to subscribe for shares of one or more of its subsidiaries to ultimately be used for general corporate purposes and/or for the purpose of partially funding the execution of Intact’s buy-in transaction announced on February 27, 2023 with respect to £6.5 billion of RSA UK pension plan liabilities; and/or
- in order to repay all or a portion of any amounts borrowed for the purpose of subscribing for shares of one or more of its subsidiaries ultimately used for partially funding the above noted buy-in transaction.
Further information can be found on Canada Newswire’s website.
Intact Financial is the largest provider of property and casualty (P&C) insurance in Canada, a leading provider of global specialty insurance, and, with RSA, a leader in the U.K. and Ireland.