Intact Financial Corp. is offering to the public 8 million noncumulative rate reset class A shares, series 7, at C$25.00 per share, for total gross proceeds of C$200 million.
The company has granted the underwriters the option to buy up to an additional 2 million of the preferred shares at the same offering price. If the underwriters fully exercise their option, the total gross proceeds will be C$250 million. The net proceeds will be used for general corporate purposes.
Holders of the preferred shares will have the right to convert their series 7 preferred shares into noncumulative floating rate class A shares, series 8, on June 30, 2023, and on June 30 every five years after that.
The holders of series 7 preferred shares will be entitled to receive floating rate noncumulative preferential cash dividends, as and when declared by the company's board, on a quarterly basis for the initial fixed rate period ending June 30, 2023, based on an annual rate of 4.90%. The dividend rate will be reset June 30, 2023, and every five years after that at a rate equal to the 90-day Canadian Treasury Bill rate plus 2.55%.
The syndicate of underwriters is led by TD Securities Inc. together with BMO Capital Markets, CIBC Capital Markets and National Bank Financial.
