Intact Financial Corporation Announces Private Placements of $250 Million Medium Term Notes and $250 Million Limited Recourse Capital Notes and Intention to Redeem 4.125% Subordinated Notes, Series 1

Executive Summary

• Intact Financial Corporation announced private placements of $250 million aggregate principal amount of 3.784% Series 17 unsecured medium‑term notes due 2038 and $250 million aggregate principal amount of 5.642% limited‑recourse capital notes (LRCNs) due 2086.
• The company also issued a formal notice to redeem all outstanding 4.125% Subordinated Notes, Series 1 (due 2081) at 100% of principal plus accrued interest as of February 28, 2026.
• Net proceeds are intended for general corporate purposes, including share subscriptions in subsidiaries and repayment of existing debt.

Key Details

• Medium Term Notes (MTNs): $250 M aggregate principal; 3.784% fixed rate until 28 Feb 2033, then 0.94% CORRA‑based; maturity 28 Feb 2038.
• Limited Recourse Capital Notes (LRCNs): $250 M aggregate principal; 5.642% fixed rate until 31 Mar 2031, thereafter reset to Canadian Government Yield + 2.75% on each five‑year anniversary; maturity 31 Mar 2086.
• Series 14 Preferred Shares: 250,000 non‑cumulative Rate Reset Class A shares issued to the Limited Recourse Trust as collateral for LRCNs.
• Redemption of Series 1 Subordinated Notes: Redemption price = 100% principal + accrued interest (excluding redemption date); effective 28 Feb 2026.
• Optional Redemption Rights:
• MTNs may be redeemed after 27 Feb 2031 (price = greater of Canada Yield Price or par) and thereafter at par after 28 Dec 2032.
• LRCNs may be redeemed each five‑year period starting 28 Feb 2031 at par plus accrued interest.
• Use of Proceeds: General corporate purposes, including equity subscriptions in subsidiaries and repayment of existing borrowings.
• Syndicate Leads: MTNs – TD Securities, CIBC Capital Markets, National Bank Financial Markets; LRCNs – CIBC Capital Markets, TD Securities, National Bank Financial Markets.
• Closing Expected: On or about 27 Feb 2026, subject to customary conditions.

Notable Quotes

(No direct quotes were provided in the release.)