Business
Intact Financial Corporation Announces $401 Million Subscription Receipt Offering
Intact Financial Corporation Announces $401 Million Subscription Receipt Offering ...
About this update from Intact Financial Corporation
[{"type":"text","content":"\n\n\n\nIntact Financial Corporation Announces $401 Million Subscription Receipt Offering\n\n/* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n\n\n\n\n\n\n\nCanada NewsWire\nTORONTO, Aug. 15, 2019\n\n\n\n/NOT FOR DISTRIBUTION TO THE U.S. NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES/\n TORONTO, Aug. 15, 2019 /CNW/ - Intact Financial Corporation (TSX: IFC) (\"Intact\" or the \"Company\") announced today that it has entered into an agreement with a group of underwriters, led by TD Securities Inc. and CIBC Capital Markets for the issuance of 3.3 million subscription receipts at a price of $120.45 per subscription receipt (less an underwriting fee) for gross proceeds of $401 million (the \"Offering\") pursuant to a bought deal public offering in Canada and to qualified institutional buyers in accordance with Rule 144A of the U.S. Securities Act of 1933, as amended (\"the U.S. Securities Act\"). Each subscription receipt will entitle the holder to receive one common share of Intact upon closing of the Acquisition (as defined below). Intact has also granted the underwriters the option to buy an additional 0.5 million subscription receipts exercisable at the Offering price for a period ending 30 days after the closing of the Offering for additional gross proceeds of up to approximately $60 million. The Offering is expected to close on August 26, 2019.\n\n \n \n\n \nThe Company is pursuing the Offering to finance a portion of the purchase price for the previously announced acquisition of The Guarantee Company of North America (\"The Guarantee\") and Frank Cowan Company Limited (\"Frank Cowan\") from Princeton Holdings Limited (the \"Acquisition\"). The Guarantee is a specialty insurer in Canada and the U.S. and Frank Cowan is a managing general agent focused on specialty insurance. \nIntact expects the Acquisition to generate a return of capital above its threshold and expects the Acquisition to be immediately accretive to net operating income per share (\"NOIPS\") with low single-digit NOIPS accretion within 24 months after close. The financing structure of the Acquisition p...