- Fairfax Financial (TSX:FFH:CA) On Tuesday, the market previously stated that it had priced the private placement of US$600 million of senior notes due in 2055 at 99.585%, and issued an additional US$150 million in private placement at an issue price of 6.000% of the senior notes due on December 7, 2033. Priority Notes. The issue price is 102.697%, plus accrued interest.
- Fairfax Financial (FFH:CA) noted that the new notes will be unsecured obligations of Fairfax and will pay a fixed interest rate of 6.100% per annum.
- The Additional 2033 Notes will have the same terms as the Original 2033 Notes and will be part of the same series as the Original 2033 Notes, except for the issuance date, issuance price and first interest payment date.
- Fairfax intends to use the net proceeds from the offering to redeem $500 million in aggregate principal amount outstanding of Allied World Assurance Company Holdings’ outstanding 4.35% senior notes due 2025 and to use the remainder for general corporate purposes.
- Fairfax also intends to enter into a registration rights agreement in connection with the note offering.
- The offering is expected to close on or about June 24, 2024.
- Source: press release
