Intact Financial Corp. (IFC.TO: Quote) said Friday that it has closed its $200 million offering of medium term notes.
The Notes will bear interest at a fixed annual rate of 5.16% until maturity on June 16, 2042.
Intact Financial plans to use the net proceeds from the offering 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 Co. from The Westaim Corp.
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 will be used to repay the term loan indebtedness outstanding under the company's existing credit facility and for general corporate purposes.
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by RTT Staff Writer
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