Fairfax Financial Holdings Limited has completed its previously announced offering (the ?Offering?) of (i) CAD 400 million in aggregate principal amount of 4.40% Senior Notes due 2036 and (ii) an additional CAD 250 million in aggregate principal amount of its 5.10% Senior Notes due 2055 (collectively, the ?Senior Notes?). Together with the previously issued CAD 300 million aggregate principal amount 5.10% Senior Notes due 2055, there is CAD 550 million aggregate principal amount of notes of this series outstanding. The Senior Notes were offered through a syndicate of dealers led by BMO Nesbitt Burns Inc., CIBC World Markets Inc., RBC Dominion Securities Inc. and Scotia Capital Inc., as joint bookrunners, and 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 Canada Limited, as agents.
The Senior Notes are unsecured obligations of Fairfax. Fairfax intends to use the net proceeds of the Offering to refinance, repay or redeem outstanding debt, equity or other corporate obligations of Fairfax and its subsidiaries, to pursue potential acquisition or investment opportunities (which may include acquisitions of minority interests in its subsidiaries), and for general corporate purposes. This may include the redemption or repurchase of certain of Fairfax?s previously issued debt or equity securities.
As of the date of this press release, Fairfax has not made any determination as to the specific debt, equity or other corporate obligations to be repaid or redeemed, nor the amount, timing or method of such repurchase or redemption. Similarly, as of the date of this press release, Fairfax has not made any determination as to the specific acquisitions or investment opportunities to be pursued, nor the cost, timing or method of such acquisitions or investments. Any such repurchase, redemption, acquisition or investment will be subject to market conditions.
Any proceeds not used to refinance, repay or redeem outstanding debt, equity or other corporate obligations or to pursue potential acquisition or investment opportunities will be used for general corporate purposes, which may include to augment Fairfax?s cash position or to increase short-term investments and marketable securities held at the holding company level.
