Intact Financial Corp. plans to issue C$425 million principal amount of 2.85% unsecured medium-term notes, series 7, on or about June 7.
The notes, due June 7, 2027, will bear interest annually.
The net proceeds will be used to partially fund the purchase price for the acquisition of OneBeacon Insurance Group Ltd., which is expected to close in the fourth quarter.
If the acquisition is not consummated on or before March 31, 2018, or is terminated before the special mandatory redemption triggering date, then Intact Financial will have to redeem the notes at a price equal to 101% of the principal amount of the notes, plus accrued and unpaid interest.
The notes are offered on a best-efforts basis through a syndicate co-led by CIBC World Markets Inc., National Bank Financial Inc. and TD Securities Inc.