Fairfax Financial completes $650-million note offering

Executive Summary

• Fairfax Financial Holdings Ltd. has completed a C$650 million senior notes offering, consisting of $400 million in 4.40% senior notes due 2036 and $250 million in 5.10% senior notes due 2055.
• The offering was led by a syndicate of dealers including BMO Nesbitt Burns, CIBC World Markets, RBC Dominion Securities, and Scotia Capital.
• Net proceeds will be used to refinance or repay outstanding debt, pursue potential acquisitions or investments, and for general corporate purposes.

Key Details

• Total Offering Size: C$650 million aggregate principal amount.
• Tranche 1: $400 million aggregate principal amount of 4.40% senior notes due 2036.
• Tranche 2: $250 million aggregate principal amount of 5.10% senior notes due 2055.
• Existing Debt Context: The 5.10% notes due 2055 series now has $550 million aggregate principal amount outstanding (including a previously issued $300 million tranche).
• Underwriters: Joint bookrunners were BMO Nesbitt Burns Inc., CIBC World Markets Inc., RBC Dominion Securities Inc., and Scotia Capital Inc. Agents included Merrill Lynch Canada Inc., National Bank Financial Inc., TD Securities Inc., Citigroup Global Markets Canada Inc., Desjardins Securities Inc., J.P. Morgan Securities Canada Inc., Mizuho Securities Canada Inc., and Morgan Stanley Ltd.
• Security Status: The senior notes are unsecured obligations of Fairfax.
• Use of Proceeds:
  • Refinancing, repaying, or redeeming outstanding debt, equity, or other corporate obligations of Fairfax and its subsidiaries.
  • Pursuing potential acquisition or investment opportunities (including minority interests in subsidiaries).
  • General corporate purposes (augmenting cash position, increasing short-term investments, or marketable securities).
• Specific Determinations: As of the release date, no specific debt, equity, or obligations have been identified for repayment/redemption, nor have specific acquisitions been determined. Any repurchases or acquisitions are subject to market conditions.

Notable Quotes

• None provided in the text.