Fairfax Launches C$650 Million Senior Notes Offering

Executive Summary

• Fairfax Financial Holdings Ltd. announced a senior notes offering of C$650 million total (C$400 M 2036 Notes and C$250 M 2055 Notes) with pricing below par.
• The notes will be issued under Fairfax’s November 3, 2025 base shelf prospectus; closing is expected around February 27, 2026.
• Net proceeds are earmarked for debt refinancing/redeeming, potential acquisitions or investments, and general corporate purposes.

Key Details

• Offering Size: C$650 million aggregate principal amount.
• 2036 Senior Notes: C$400 million, fixed rate 4.40% per annum, priced at C$99.968 per C$100 of principal.
• 2055 Senior Notes: C$250 million, 5.10% coupon, priced at C$99.485 per C$100 of principal plus accrued interest.
• Syndicate Lead Bookrunners: BMO Nesbitt Burns Inc., CIBC World Markets Inc., RBC Dominion Securities Inc., Scotia Capital Inc.; additional agents include Merrill Lynch Canada, National Bank Financial, TD Securities, Citigroup Global Markets Canada, Desjardins Securities, J.P. Morgan Securities Canada, Mizuho Securities Canada, Morgan Stanley Canada Ltd.
• Existing Debt: Fairfax currently has C$300 million of 5.10% senior notes due 2055 outstanding (the “Original 2055 Notes”). The new 2055 Notes will share the same terms except for issue date, price, and first interest payment date.
• Use of Proceeds:
• Repay or redeem existing debt/equity obligations.
• Pursue acquisition or investment opportunities (including minority interests).
• General corporate purposes such as augmenting cash balances or increasing short‑term investments/marketable securities.
• Closing Date: Expected on or about February 27, 2026, subject to customary conditions.
• Regulatory Filings: Offering made pursuant to Fairfax’s base shelf prospectus (dated Nov 3, 2025) and a forthcoming prospectus supplement to be filed with Canadian securities regulators; documents available via SEDAR+.
• Restrictions: The press release does not constitute an offer or solicitation in the United States; securities will not be offered or sold in the U.S. absent registration or exemption.

Notable Quotes

(No direct quotes were provided in the release.)