NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR
DISSEMINATION IN THE UNITED
STATES
TORONTO, March 15,
2022 /CNW/ - Intact Financial Corporation (TSX: IFC)
("Intact" or the "Company") announced today that it has closed its
previously announced bought deal offering (the "Offering") of
Non-Cumulative Class A Shares, Series 11 (the "Series 11 Preferred
Shares") underwritten by a syndicate of underwriters led by TD
Securities Inc. together with BMO Capital Markets, CIBC Capital
Markets, National Bank Financial, RBC Capital Markets and
Scotiabank, resulting in aggregate gross proceeds (including the
proceeds resulting from the exercise of their option) to Intact of
$150 million. The net proceeds are
expected to be used by Intact to fund a portion of the redemption
price of all of the outstanding floating rate restricted notes
(approximately $445 million, based on
the exchange rate as of March 4,
2022) of the Company's subsidiary, RSA Insurance Group
Limited (formerly RSA Insurance Group plc) and/or for general
corporate purposes.
Each Series 11 Preferred Share entitles the holder thereof to
receive quarterly non-cumulative preferential cash dividends, if,
as and when declared by the Board of Directors, on the last day of
March, June, September and December in each year at a rate equal to
$0.328125 per share. The initial
dividend, if declared, will be paid on June
30, 2022 and will be $0.3848
per share.
The Series 11 Preferred Shares will commence trading today on
the Toronto Stock Exchange under the symbol IFC.PR.K.
The Series 11 Preferred Shares have not been and will not be
registered under the U.S. Securities Act of 1933, as amended (the
"U.S. Securities Act"), and may not be offered or sold in
the United States or to or for the
account or benefit of U.S. persons absent registration or an
applicable exemption from the registration requirements of the U.S.
Securities Act. This news release shall not constitute an
offer to sell or the solicitation of an offer to buy the Series 11
Preferred Shares in the United
States or in any other jurisdiction where such offer,
solicitation or sale would be unlawful.
About Intact Financial Corporation
Intact Financial Corporation (TSX: IFC) 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. Our business has grown organically
and through acquisitions to over $20
billion of total annual premiums.
In Canada, Intact distributes
insurance under the Intact Insurance brand through a wide network
of brokers, including its wholly-owned subsidiary BrokerLink, and
directly to consumers through belairdirect. Intact also provides
affinity insurance solutions through the Johnson Affinity
Groups.
In the U.S., Intact Insurance Specialty Solutions provides a
range of specialty insurance products and services through
independent agencies, regional and national brokers, and
wholesalers and managing general agencies.
Outside of North America, the
Company provides personal, commercial and specialty insurance
solutions across the U.K., Ireland, Europe and the Middle East through the RSA brands.
Forward-Looking Statements
This press release contains forward-looking statements. When
used in this press release, the words "may", "will", "would",
"should", "could", "expects", "plans", "intends", "trends",
"indications", "anticipates", "believes", "estimates", "predicts",
"likely", "potential" or the negative or other variations of these
words or other similar or comparable words or phrases, are intended
to identify forward-looking statements. This press release contains
forward-looking statements with respect to, among other things, the
use of proceeds of the Offering. Unless otherwise indicated, all
forward-looking statements in this press release are made as of
March 15, 2022 and are subject to
change after that date.
Forward-looking statements are based on estimates and
assumptions made by management based on management's experience and
perception of historical trends, current conditions and expected
future developments, as well as other factors that management
believes are appropriate in the circumstances. In addition to other
estimates and assumptions which may be identified herein, estimates
and assumptions have been made regarding, among other things, the
expected use of the net proceeds of the Offering.
Many factors could cause the Company's actual results,
performance or achievements or future events or developments to
differ materially from those expressed or implied by the
forward-looking statements.
All of the forward-looking statements included in this press
release are qualified by these cautionary statements, those made in
the section entitled "Risk Management" of the Company's
management's discussion and analysis of operating and financial
results for the year ended December 31,
2021 and those made in the prospectus supplement filed in
respect of the Offering. These cautionary statements are not
intended to represent a complete list of the factors that could
affect the Company. These cautionary statements should, however, be
considered carefully. Although the forward-looking statements are
based upon what management believes to be reasonable assumptions,
the Company cannot assure investors that actual results will be
consistent with these forward-looking statements. Investors should
not rely on forward-looking statements to make decisions, and
investors should ensure the preceding information is carefully
considered when reviewing forward-looking statements made in this
press release. The Company has no intention and undertakes no
obligation to update or revise any forward-looking statements,
whether as a result of new information, future events or otherwise,
except as required by law.
SOURCE Intact Financial Corporation