FFH.PR.E: Fair Facts of First Day's Trading

Fairfax Financial Holdings has announced that it:

has completed its previously announced public offering of Cumulative 5-Year Rate Reset Preferred Shares, Series E in Canada. Fairfax issued 8 million Series E Preferred Shares for net proceeds, after commissions and expenses, of approximately $194 million.

The Series E Preferred Shares were sold through a syndicate of Canadian underwriters led by BMO Capital Markets that included CIBC World Markets, RBC Capital Markets, Scotia Capital, TD Securities, National Bank Financial, GMP Securities, Cormark Securities, Desjardins Securities and HSBC Securities.

The issue suffered through a rather poor first day, trading 117,310 shares in a range of 24.00-50 before closing at 24.10-19, 5×14. I suspect a good chunk is still on the underwriters’ books.

Vital Statistics are:

Maturity Type : Limit Maturity
Maturity Date : 2040-02-01
Maturity Price : 24.06
Evaluated at bid price : 24.10
Bid-YTW : 4.75 %

The FixedReset 4.75%+216 issue was announced January 21. FFH.PR.E is tracked by HIMIPref™, but is relegated to the Scraps subindex on credit concerns.

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