10:08 AM EDT, 05/28/2025 (MT Newswires) -- Definity Financial ( DFYFF ) on Wednesday said it increased the size of its previously announced private placements to about $385 million.

RBC Capital Markets, the lead underwriter and sole bookrunner, will purchase, on a bought deal basis, about 4.63 million Definity common shares at $66.65 each for gross proceeds of approximately $309 million.

Healthcare of Ontario Pension Plan Trust Fund (HOOPP) agreed to increase its purchase of common shares to 1.1 million for proceeds of about $77 million.

A statement noted that the net proceeds from the offering and HOOPP private placement are intended to be used by Definity to fund a portion of the purchase price of the previously announced acquisition of the Canadian operations of Travelers, other than Travelers' Canadian surety business, for cash consideration of approximately $3.3 billion. The closing of the HOOPP private placement is conditional on the closing of the offering but the offering's closing is not conditional on the closing of the HOOPP private placement.

The company added that the closing of the offering is expected to occur on or about June 11, subject to the approval of the Toronto Stock Exchange and customary closing conditions and that the closing is not conditional upon closing of the Travelers transaction.

If the Travelers transaction does not close, the company expects to use the net proceeds from the offering for general corporate purposes.

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