Highlights

  • IFC shares gained 2.70% to close at CAD 260.40.
  • Company announced CAD 500M in concurrent private placements.
  • Series 1 subordinated notes set for redemption on Feb. 28, 2026.

Shares of Intact Financial Corporation (TSX:IFC) advanced 2.70% on February 12, closing at CAD 260.40, following the company’s announcement of concurrent private placements totalling CAD 500 million and plans to redeem outstanding subordinated notes.

Capital Raising Through Private Placements
The company confirmed it will issue CAD 250 million in 3.784% Series 17 unsecured medium term notes due February 28, 2038, alongside CAD 250 million in 5.642% Limited Recourse Capital Notes (LRCNs), Series 2, due March 31, 2086. The offerings are being made to accredited investors in Canada.

The medium term notes will carry a fixed annual interest rate of 3.784% until February 28, 2033. After that date, the rate will reset to 0.94% over Daily Compounded CORRA until maturity in 2038. These notes will rank equally with other unsecured and unsubordinated debt obligations of the company.

The LRCNs will pay interest at 5.642% annually until March 31, 2031. Thereafter, the rate will reset every five years based on the Government of Canada yield plus 2.75% until maturity in 2086. The LRCNs will be subordinated to senior indebtedness and effectively subordinated to obligations of the company’s subsidiaries.

Redemption of Series 1 Subordinated Notes
Intact has issued a formal notice to holders of its 4.125% Fixed-to-Fixed Rate Subordinated Notes, Series 1, due March 31, 2081. The company intends to redeem these notes on February 28, 2026, at 100% of principal, together with accrued and unpaid interest up to, but excluding, the redemption date.

The newly issued LRCNs are structured with associated Non-Cumulative Rate Reset Class A Shares, Series 14, held in a limited recourse trust. In the event of non-payment, recourse will be limited to the trust’s assets, which primarily consist of the preferred shares, except in specified circumstances.

Use of Proceeds and Issuance Timeline
Intact indicated that net proceeds from the private placements will be used for general corporate purposes. This may include subscribing for shares of subsidiaries or repaying previously borrowed amounts.

The offerings are being conducted on a best efforts basis through underwriting syndicates, and closing is expected on or about February 27, 2026, subject to customary conditions.

With IFC shares moving higher on the day of the announcement, Intact Financial Corporation is undertaking refinancing activity through new medium term notes and LRCNs while redeeming its Series 1 subordinated notes. Market participants are monitoring how the revised capital structure aligns with the company’s broader funding and liability management approach.