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Intact raises$ 150 Million on the market

by

Mathieu Carbasse

August 22, 2017 11:30

Photo : Rawpixel.com

Intact financial Corporation has recently completed the closing of its offering by way of underwriting of $ 6 million of class A preference shares (series 6) underwritten by a syndicate of underwriters led by capital Markets CIBC with BMO capital Markets, National Bank Financial and TD Securities Inc.

The purpose of the transaction was to generate gross proceeds of$ 150 Million, which will be assigned to the financing by Intact acquisition of OneBeacon Insurance Group announced earlier.

Valued at nearly$ 2.3 billion, the transaction must be financed through equity of$ 700 Million, capital surplus of approximately$ 700 Million and a funding of about$ 1 billion from term loan bank, medium term notes and preferred shares.

Giant north american specialized insurance

Intact financial Corporation affirms that it will retain its solid financial situation, with a MCT estimated in excess of 200 % at the close and plans to bring its debt-to-invested capital ratio below the target level of 20 % in the 24 months following the closing of the acquisition.

The transaction will create a leading north american insurance specialist generating annual premiums of more than$ 2 billion. It will give the canadian insurer of new products and cross-border capacities to better position itself to compete with international insurers.

A conclusion by the end of the year

The closing of the acquisition of OneBeacon Insurance Group should take place in the third quarter or early in the fourth quarter of 2017. It remains subject to obtaining the required regulatory approvals. If the acquisition is not completed, the net proceeds of this offering will be used for general corporate purposes. Finally, note that the debt of OneBeacon approximately$ 275 MILLION US remain unpaid.

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