The Globe and Mail reports in its Thursday edition that Fairfax Financial Holdings ($588.85) is investing $190-million via an interest-bearing security (essentially preferred shares) into AGT Food and Ingredients ($25.86). The Globe's Niall McGee writes that Fairfax will earn a coupon of 5.375 per cent on the securities, a premium of about 300 basis points compared with the dividend yield on the common shares. The securities have a term of 99 years -- a duration one analyst called "bewildering." In addition, Fairfax has been granted 7.5 million warrants exercisable for the next seven years into common stock with a strike price of $33.25 a share. Fairfax gets to nominate a director right away and can nominate a second director if it exercises all of the warrants. That would eventually make it AGT's biggest shareholder with a 19-per-cent interest. AGT head Murad Al-Katib is currently AGT's biggest shareholder. On the surface, it appears that Fairfax came away the winner. Sprung Investment president Michael Sprung says he thought the deal "was very generous to Fairfax." What AGT gets from the Fairfax is a vote of confidence from one of Canada's best-known value investors in Prem Watsa.