Intact Financial Corp.(IFC.TO: Quote) announced that it intends to issue $200 million principal amount of unsecured medium term notes. The Notes will be direct unsecured obligations of IFC and will rank equally with all other unsecured and unsubordinated indebtedness of IFC. The Notes will bear interest at a fixed annual rate of 5.16% until maturity on June 16, 2042.
The company said it intends to use the net proceeds from the offering of Notes towards reducing its current term loan indebtedness under its existing credit facility and funding a portion of the purchase price for its previously announced acquisition of all of the issued and outstanding shares of JEVCO Insurance Company from The Westaim Corporation.
The closing of the Acquisition is expected to occur in the fall of 2012. The offering is not conditional upon closing of the Acquisition; if the Acquisition is not completed, the net proceeds from the offering of Notes will be used to repay the term loan indebtedness outstanding under IFC's existing credit facility and for general corporate purposes, the company said.
The Notes are expected to be issued on June 15 , 2012.
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by RTT Staff Writer
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