Fairfax Financial arranges $700-million note offering

Executive Summary

• Fairfax Financial Holdings Ltd. is launching a C$700 million senior notes offering, consisting of two tranches: $400 million due in 2035 and $300 million due in 2055.
• The notes are priced at $99.824 and $99.619 per $100 principal amount, respectively, with fixed interest rates of 4.45% and 5.10% per annum.
• 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$700 million in aggregate principal amount.
• Tranche 1: $400 million aggregate principal amount of senior notes due 2035.
  • Price: $99.824 per $100 principal amount.
  • Interest Rate: Fixed rate of 4.45% per annum.
• Tranche 2: $300 million aggregate principal amount of senior notes due 2055.
  • Price: $99.619 per $100 principal amount.
  • Interest Rate: Fixed rate of 5.10% per annum.
• Structure: Unsecured obligations of Fairfax Financial Holdings Ltd.
• Underwriters/Agents: Joint bookrunners led by National Bank Financial Inc., RBC Dominion Securities Inc., Scotia Capital Inc., and TD Securities Inc. Agents include BMO Nesbitt Burns Inc., CIBC World Markets Inc., Merrill Lynch Canada Inc., Citigroup Global Markets Canada Inc., Desjardins Securities Inc., J.P. Morgan Securities Canada Inc., Mizuho Securities Canada Inc., and Morgan Stanley Ltd.
• Use of Proceeds: Refinancing, repaying, or redeeming outstanding debt, equity, or other corporate obligations; pursuing potential acquisition or investment opportunities (including minority interests in subsidiaries); and general corporate purposes (which may include augmenting cash position or increasing short-term investments).
• Closing Date: Expected on or about August 14, 2025, subject to customary conditions.
• Regulatory Basis: Offered under Fairfax's base shelf prospectus dated October 11, 2023, supplemented by a prospectus supplement to be filed with Canadian securities regulators.