14th Dec 2020 10:31
(Alliance News) - Intact Financial Corp on Monday said it will issue in aggregate CAD600 million, around GBP350.5 million, through a series of two notes, which will go towards partially funding its portion of the acquisition of RSA Insurance Group PLC.
The Canadian insurance firm will issue CAD300 million in 'series nine' unsecured medium-term notes, which will bear interest at a fixed annual rate of 1.928% and have a maturity date of December 16, 2030.
Intact will issue another CAD300 million in 'series ten' notes, which will have a fixed annual rate of 2.954% until maturity on December 16, 2050.
In mid-November, RSA Insurance had agreed to be sold in a deal with a two-headed consortium which valued the insurer at GBP7.2 billion.
The deal will see the insurer divided between Canada's Intact and Scandinavian insurer Tryg AS.
Under the deal, RSA shareholders will receive 685 pence in cash for each share. In addition, RSA shareholders will be entitled to receive the insurer's interim dividend of 8p.
The Intact notes have been offered through a syndicate led by CIBC World Markets Inc, TD Securities Inc and National Bank Financial Inc, and are expected to be issued on or about Wednesday.
Shares in RSA Insurance were up 0.2% at 676.60 pence on Monday in London.
By Dayo Laniyan; [email protected]
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