Intact closes $754M financing with $340M from CDPQ, CPPIB, OTPP

Ted Liu

Intact Financial Corporation (TSX: IFC) has closed previously announced acquisition financing, raising $754 million through a bought deal and a con-current private placement.

Intact Financial has closed a bought deal offering of 4.5 million Subscription Receipts at a price of $91.85 per Subscription Receipt for gross proceeds (including the over-allotment option proceeds) of approximately $414 million.

The bought deal is underwritten by a syndicate of underwriters led by CIBC Capital Markets and TD Securities Inc. Blake, Cassels & Graydon LLP and McCarthy Tétrault LLP acted as legal counsel to Intact and the underwriters respectively.

Intact Financial has also completed a private placement to CDPQ Marchés boursiers inc. (Caisse de dépôt et placement du Québec (CDPQ)), Canada Pension Plan Investment Board (CPPIB) and 2380162 Ontario Limited (Ontario Teachers’ Pension Plan (OTPP)) of 3.7 million Subscription Receipts for gross proceeds of approximately $340 million.

Davies Ward Phillips & Vineberg LLP acted as legal advisor to CDPQ, CPPIB and OTPP.

Net proceeds will be held in escrow and are intended to be used by IFC to fund a portion of the purchase price for its previously announced acquisition of all of the issued and outstanding shares of OneBeacon Insurance Group, Ltd.

The closing of the acquisition is expected to occur in the fourth quarter of 2017.

photo credit: Intact