FFH.PR.I Settles Steady on Big Volume

Fairfax Financial Holdings has announced that it:

has completed its previously announced public offering of Preferred Shares, Series I (the “Series I Shares”) in Canada. As a result of the underwriters’ exercising in full their option to purchase an additional 2,000,000 Series I Shares, Fairfax has issued 12,000,000 Series I Shares for gross proceeds of $300 million. Net proceeds of the issue, after commissions and expenses, are approximately $291 million.

Fairfax intends to use the net proceeds of the offering to augment its cash position, to increase short term investments and marketable securities held at the holding company level, to retire outstanding debt and other corporate obligations from time to time, and for general corporate purposes.

The Series I Shares were sold through a syndicate of Canadian underwriters led by BMO Capital Markets, CIBC World Markets Inc., RBC Dominion Securities Inc. and Scotia Capital Inc., and that also included TD Securities Inc., National Bank Financial Inc., Cormark Securities Inc., GMP Securities L.P., Canaccord Genuity Corp., Desjardins Securities Inc. and HSBC Securities (Canada) Inc.

$300-million? That means the greenshoe was fully exercised. FFH.PR.I is a FixedReset 5.00%+285, announced September 27.

FFH.PR.I traded 516,783 shares in a range of 24.85-97 before closing at 24.91-93, 5×33.

Vital statistics are:

Maturity Type : Limit Maturity
Maturity Date : 2040-10-05
Maturity Price : 24.86
Evaluated at bid price : 24.91
Bid-YTW : 4.88 %

FFH.PR.I is tracked by HIMIPref™ but is relegated to the Scraps index on credit concerns.

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