Specialty insurance provider, Trisura Group, has entered into an agreement with a syndicate of underwriters led by BMO Capital Markets, under which the underwriters have agreed to buy on bought deal basis 1,520,000 common shares of Trisura, at a price of $32.90 per Common Share for gross proceeds of approximately $50 million.
According to the announcement, the net proceeds of the offering will be used for general corporate purposes, which includes, but not limited to, supporting the growth of the platform in both the US and Canada.
Moreover, Trisura has also granted the underwriters an option, exercisable in whole or in part at any time at the offering price for a period of 30 days following the closing of the offering, to purchase up to an additional 15% of the Common Shares issued under the offering to cover over-allotments, if any.
It is important to note that the Common Shares to be issued under the offering will be offered by way of a prospectus supplement to be filed in each of the provinces and territories of Canada, which may also be offered in the US on a private placement basis pursuant to an exemption from the registration requirements of the United States Securities Act of 1933, as amended, and applicable state securities laws, and certain other jurisdictions outside of Canada and the US.
The offering is expected to close on or around August 21, 2023, and is subject to Trisura receiving all necessary regulatory approvals.
“Our business continues to perform beyond our expectations, as demonstrated by recent operating profitability and growth. New capital will continue to position Trisura to support that potential in Canada and the U.S. for the long term, as well as proactively capitalize our US Surety platform and benefit from attractive investment income,” said David Clare, President and CEO.
In May, it was reported that Argo Group International Holdings, Ltd., had come to an agreement with Trisura to support its surety underwriting operations as it looks to revamp and grow its surety business.
