A syndicate of underwriters led by Cormark Securities Inc. and BMO Capital Markets agreed to purchase 1,516,000 of Trisura Group Ltd.'s common shares for C$26.40 apiece on a bought-deal public offering basis.
Gross proceeds from the offering will be about C$40.0 million.
Simultaneous with the bought-deal public offering's completion, Trisura will offer up to 455,000 of its common shares in a private placement at C$26.40 each for additional gross proceeds of up to C$12.0 million. Partners Value Investments LP, the insurer's principal shareholder, will subscribe for not less than its pro rata ownership position, or about C$10 million of the gross proceeds of the private placement.
Net proceeds from the offering and the private placement will be used for general corporate purposes, including aiding the growth of the company's U.S. fronting platform and further enhancing asset-liability matching in its reinsurance business.
For market stabilization purposes and to cover any overallotments, Trisura has given the underwriters an option to purchase up to an additional 15% of the company's common shares. The option is partly or wholly exercisable at any time up to 30 days after the bought-deal public offering closes.
The completion of the bought-deal public offering and the private placement will be conditional on each other and is expected to take place on or about Sept. 24, subject to certain customary conditions, including the Toronto Stock Exchange's approval.
