Fairfax Financial Holdings Ltd. priced a private offering of an additional €150 million of its 2.75% senior notes due March 29, 2028, at an issue price of 98.893%, plus accrued interest.
The company has outstanding €600 million of notes of the series. The additional notes will have the same terms as the original notes, except for the issue price and date. The issue price will include about €565,068.49 of accrued interest from March 29, the issue date of the original notes.
Proceeds from the latest offering will be used to refinance or repay outstanding debt or other corporate obligations of Fairfax Financial and its subsidiaries and for general corporate purposes, which may include the redemption or repurchase of some of the company's previously issued senior unsecured notes. Any remaining proceeds will be used to augment the company's cash position, to increase the short-term investments and marketable securities held at the holding company level and/or for other general corporate purposes.
The offering is expected to close on or about May 18.
The notes are expected to be offered primarily in Europe to nonretail investors. They are not for sale in Canada and will be sold only through a private placement to qualified institutional buyers in the U.S.