Fairfax Announces Pricing of Senior Notes Offering

TORONTO, April 24, 2020 (GLOBE NEWSWIRE) -- Fairfax Financial Holdings Limited (“Fairfax”) (TSX: FFH and FFH.U) announces that it has priced a private offering of US$650,000,000 of Fairfax’s Senior Notes due 2030 (the “Notes”) at an issue price of 100%. The Notes will be unsecured obligations of Fairfax and will pay a fixed rate of interest of 4.625% per annum. Fairfax also intends to enter into a registration rights agreement in connection with the offering. 

Fairfax intends to use a portion of the net proceeds from this offering to repay indebtedness under its unsecured revolving credit facility. Any net proceeds in excess of this amount will be used to repay outstanding debt of Fairfax and its subsidiaries and for general corporate purposes of Fairfax and its subsidiaries. This may include the redemption or repurchase of certain of Fairfax’s previously issued senior unsecured notes and/or repayment of additional indebtedness under Fairfax’s credit facility. Except as set forth above, 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 of Fairfax and its subsidiaries. The offering is expected to close on or about April 29, 2020, subject to the satisfaction of customary conditions.

The offering is being 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 (the “Securities Act”), 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.