TORONTO - Fairfax Financial Holdings (OTC:FRFHF) Limited (TSX: FFH and FFH.U) has announced the pricing of its private offering of $200 million in additional senior notes, with the aim to repay upcoming debt maturities. The 6% Senior Notes, due December 7, 2033, are priced at 100.998%, including accrued interest since the original issue date.
The new notes will be an extension of the $400 million aggregate principal amount of the original series, differing only in issue date and price. The proceeds, along with a portion from the original notes, will be used to address outstanding indebtedness. Specific details regarding the debt repayments have not been disclosed.
The offering is scheduled to close around January 12, 2024, subject to customary conditions. The notes will trade under the same identification numbers as the original, except for a temporary distinction for those sold under Regulation S, which will be consolidated with the original notes after 40 days.
This private placement targets qualified institutional buyers and certain non-U.S. persons, adhering to the Securities Act's Rule 144A and Regulation S. These notes have not been registered under the Securities Act or Canadian securities laws and are not directly available in Canada except through specific exemptions.
Fairfax, a holding company primarily engaged in property and casualty insurance, reinsurance, and investment management, has not registered the notes for public sale in the United States or Canada.
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