08:25:52 EDT Thu 28 Mar 2024
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or Name
USA
CA



Fairfax Financial Holdings Ltd
Symbol FFH
Shares Issued 27,904,801
Close 2018-04-17 C$ 668.61
Market Cap C$ 18,657,428,997
Recent Sedar Documents

Fairfax Financial completes senior notes sale

2018-04-17 17:56 ET - News Release

Mr. John Varnell reports

FAIRFAX COMPLETES US$600 MILLION SENIOR NOTES OFFERING

Fairfax Financial Holdings Ltd. has completed its previously announced offering of $600-million (U.S.) in aggregate principal amount of 4.850 per cent senior notes due 2028. In anticipation of the offering of the notes, Fairfax initiated a hedge of the treasury benchmark related to the notes. After giving effect to the benefit of this hedge, the effective interest rate on the notes is 4.58 per cent per annum. In connection with the closing of the offering, Fairfax entered into a customary registration rights agreement.

Fairfax intends to use the net proceeds from this offering to refinance or repay outstanding debt or other corporate obligations of Fairfax and its subsidiaries and for general corporate purposes. This may include the redemption or repurchase of certain of Fairfax's previously issued senior unsecured notes. As of the date of this press release, Fairfax has not made any determination as to the specific debt or other obligations to be repaid, nor the amount, timing or method of repayment. Any repurchase of senior notes will be subject to market conditions, and there can be no assurance that senior notes will be available for repurchase on terms acceptable to Fairfax. Any proceeds not used to refinance or repay debt or other corporate obligations will be used to augment Fairfax's cash position, to increase short-term investments and marketable securities held at the holding company level and/or for other general corporate purposes.

The offering was made solely by means of a private placement either to qualified institutional buyers pursuant to Rule 144A under the U.S. Securities Act of 1933, as amended, or to certain non-U.S. persons in offshore transactions pursuant to Regulation S under the Securities Act. The notes have not been registered under the Securities Act and the notes may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act. The notes have not been and will not be qualified for sale under the securities laws of any province or territory of Canada and may not be offered or sold directly or indirectly in Canada or to or for the benefit of any resident of Canada except pursuant to applicable prospectus exemptions.

Offers of the notes have been made only by means of a private offering memorandum. Fairfax is a holding company which, through its subsidiaries, is engaged in property and casualty insurance and reinsurance and investment management.

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