Element Financial announced it closed its previously announced prospectus offering of subscription receipts, 4.25% extendible convertible unsecured subordinated debentures and 6.50% cumulative five-year rate reset preferred shares, Series G. The offering raised gross proceeds of $2.78 billion and the company intends to use the net proceeds of $2.72 billion from the offering to fund future acquisitions.

Element issued, on a bought deal basis: (i) 119,735,000 Subscription Receipts at a price of $17.00 per Subscription Receipt for gross proceeds of approximately $2.04 billion; (ii) $575,000,000 aggregate principal amount of Debentures; and (iii) 6,900,000 Series G Shares at a price of $25.00 per share for gross proceeds of $172,500,000.

The Offering included the exercise in full by the underwriters of their respective over-allotment options to purchase: (i) an additional 10,885,000 Subscription Receipts, (ii) an additional $75.0 million aggregate principal amount of Debentures and (iii) an additional 900,000 Series G Shares, each on the same terms as the initial offering, resulting in additional gross proceeds of $282.5 million.

The offering of the Subscription Receipts was conducted by a syndicate of underwriters co-led by BMO Capital Markets, Barclays Capital Canada, CIBC World Markets, National Bank Financial, RBC Dominion Securities and TD Securities and including Credit Suisse Securities (Canada), GMP Securities, Macquarie Capital Markets Canada, Manulife Securities, Cormark Securities and Desjardins Securities.

The offering of the Debentures was conducted by a syndicate of underwriters led by BMO Capital Markets and including Barclays Capital Canada, CIBC World Markets, National Bank Financial, RBC Dominion Securities, TD Securities, Credit Suisse Securities (Canada), GMP Securities, Macquarie Capital Markets Canada, Cormark Securities, Desjardins Securities and Manulife Securities.

The offering of Series G Shares was conducted by a syndicate of underwriters co-led by BMO Capital Markets, CIBC World Markets, National Bank Financial, RBC Dominion Securities and TD Securities and including GMP Securities, Cormark Securities, Desjardins Securities, Macquarie Capital Markets Canada and Manulife Securities.