Fairfax Announces Pricing of Senior Notes Offering

TORONTO, March 01, 2021 (GLOBE NEWSWIRE) -- Fairfax Financial Holdings Limited (“Fairfax”) (TSX: FFH and FFH.U) announces that it has priced a private offering of US$600,000,000 of Fairfax’s Senior Notes due 2031 (the “Notes”) at an issue price of 99.865%. The Notes will be unsecured obligations of Fairfax and will pay a fixed rate of interest of 3.375% per annum. Fairfax also intends to enter into a registration rights agreement in connection with the offering.

Fairfax intends to use the net proceeds from this offering to repay a portion of the indebtedness under its unsecured revolving credit facility and other outstanding debt of Fairfax and its subsidiaries. This may include the redemption or repurchase of certain previously issued senior unsecured notes and/or other debt securities of Fairfax and its subsidiaries. Except as set forth above, as of the date hereof, 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 unsecured notes and/or other debt securities of Fairfax and its subsidiaries will be subject to market conditions, and there can be no assurance that such note or securities will be available for repurchase on terms acceptable to Fairfax. The offering is expected to close on or about March 3, 2021, 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.