Industrial Alliance Insurance and Financial Services Inc Announces Issue Of $225 Million Of Common Shares


Tuesday, 19 Feb 2013 04:16pm EST 

Industrial Alliance Insurance and Financial Services Inc announced that it has entered into an agreement with a syndicate of underwriters co-led by National Bank Financial Inc. and BMO Capital Markets, pursuant to which the underwriters have agreed to purchase, on a bought deal basis, 6,000,000 Common Shares from Industrial Alliance for sale to the public at a price of $37.50 per Common Share, representing aggregate gross proceeds of $225 million. The Company has also granted the underwriters an option to buy up to an additional $25 million of the Common Shares at the same price per share to cover over-allotments, if any. This share offering is expected to close on or about February 27, 2013, subject to certain conditions including approval from the Toronto Stock Exchange. The net proceeds of approximately $216 million, after deducting underwriting commissions and before issuance costs, will be used to redeem all of the outstanding 8.25% subordinated debentures due March 27, 2019 with a nominal value of $100 million and to redeem all of the Industrial Alliance Trust Securities - Series A with a nominal value of $150 million. 

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