NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES
TORONTO, May 17, 2018 (GLOBE NEWSWIRE) -- Intact Financial Corporation (TSX:IFC) announced today that it has
entered into an agreement with a syndicate of underwriters led by TD Securities Inc. together with BMO Capital Markets, CIBC
Capital Markets and National Bank Financial pursuant to which the underwriters have agreed to purchase, on a bought deal basis,
8,000,000 Non-Cumulative Rate Reset Class A Shares, Series 7 (the “Series 7 Preferred Shares”) from Intact for sale to the public
at a price of $25.00 per Series 7 Preferred Share, representing aggregate gross proceeds of $200 million.
Intact has granted the underwriters an underwriters’ option to purchase up to an additional 2,000,000 Series 7
Preferred Shares at the same offering price exercisable in whole or in part, at any time before 8:30am on the date that is two (2)
business days prior to closing. Should the underwriters’ option be fully exercised, the total gross proceeds of the Series 7
Preferred Shares offering will be $250 million. The net proceeds will be used for general corporate purposes.
The holders of Series 7 Preferred Shares will be entitled to receive fixed non-cumulative preferential cash
dividends, as and when declared by the Board of Directors of Intact, on a quarterly basis (with the first quarterly dividend,
covering the period from issuance to September 30, 2018, to be paid on September 28, 2018), for the initial fixed rate period
ending on June 30, 2023, based on an annual rate of 4.90%. The dividend rate will be reset on June 30, 2023 and every five
years thereafter at a rate equal to the 5-year Government of Canada bond yield plus 2.55%.
Holders of the Series 7 Preferred Shares will have the right, at their option, to convert their Series 7
Preferred Shares into Non-cumulative Floating Rate Class A Shares, Series 8 (the "Series 8 Preferred Shares"), subject to certain
conditions, on June 30, 2023 and on June 30 every five years thereafter. The holders of Series 8 Preferred Shares will be
entitled to receive floating rate non-cumulative preferential cash dividends, as and when declared by the Board of Directors of
Intact, at a rate equal to the 90-day Canadian Treasury Bill rate plus 2.55%.
DBRS Limited has assigned a provisional rating of Pfd-2 for the Series 7 Preferred Shares.
The Series 7 Preferred Shares will be offered for sale to the public in each of the provinces and territories of
Canada pursuant to a prospectus supplement to be filed with the Canadian securities regulatory authorities. The offering is
scheduled to close on or about May 29, 2018.
The Series 7 Preferred Shares have not been and will not be registered under the U.S. Securities Act of 1933, as
amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration
requirements. This news release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there
be any sale of the Series 7 Preferred Shares in any State in which such offer, solicitation or sale would be unlawful.
About Intact Financial Corporation
Intact Financial Corporation (TSX:IFC) is the largest provider of property and casualty (P&C) insurance in
Canada and a leading provider of specialty insurance in North America, with close to $10 billion in total annual premiums. The
Company has over 13,000 full- and part-time employees who serve more than five million personal, business, public sector and
institutional clients through offices in Canada and the U.S. In Canada, Intact distributes insurance under the Intact Insurance
brand through a wide network of brokers, including its wholly-owned subsidiary BrokerLink, and directly to consumers through
belairdirect. In the U.S., OneBeacon Insurance Group, a wholly-owned subsidiary, provides specialty insurance products through
independent agencies, brokers, wholesalers and managing general agencies.
Forward Looking Statements
This press release contains forward-looking statements. When used in this press release, the words "may",
"will", "would", "should", "could", "expects", "plans", "intends", "trends", "indications", "anticipates", "believes", "estimates",
"predicts", "likely", "potential" or the negative or other variations of these words or other similar or comparable words or
phrases, are intended to identify forward- looking statements. This press release contains forward-looking statements with respect
to, among other things, the size of the offering, the use of proceeds of the offering and the anticipated closing of the
offering.
Forward-looking statements are based on estimates and assumptions made by management based on management's
experience and perception of historical trends, current conditions and expected future developments, as well as other factors that
management believes are appropriate in the circumstances. Many factors could cause the Company's actual results, performance
or achievements or future events or developments to differ materially from those expressed or implied by the forward- looking
statements, including, without limitation the timing and completion of the offering.
Certain material factors or assumptions are applied in making these forward-looking statements, including
completion of the offering.
All of the forward-looking statements included in this press release are qualified by these cautionary
statements, those made in the "Risk Management" sections of management's discussion and analysis of operating and financial results
for the year ended December 31, 2017 and the three months ended March 31, 2018 and those that may be made in the prospectus
supplement to be filed in respect of the Offering. These factors are not intended to represent a complete list of the factors that
could affect the Company. These factors should, however, be considered carefully. Although the forward- looking statements are
based upon what management believes to be reasonable assumptions, the Company cannot assure investors that actual results will be
consistent with these forward-looking statements. When relying on forward-looking statements to make decisions, investors should
ensure the preceding information is carefully considered. Undue reliance should not be placed on forward-looking statements made in
this press release. The Company has no intention and undertakes no obligation to update or revise any forward-looking statements,
whether as a result of new information, future events or otherwise, except as required by law.
Media Inquiries:
Stephanie Sorensen
Director, External Communications
416 344-8027
stephanie.sorensen@intact.net
Investor Inquiries:
Ken Anderson
Vice President, Investor Relations & Treasurer
855 646-8228 ext. 87383
kenneth.anderson@intact.net
