FFH.PR.K Closes at Discount on Good Volume

Fairfax Financial Holdings Ltd. has announced that it:

has completed its previously announced public offering of Preferred Shares, Series K (the “Series K Shares”) in Canada. As a result of the underwriters’ exercising their option to purchase an additional 1,500,000 Series K Shares, Fairfax has issued 9,500,000 Series K Shares for gross proceeds of $237.5 million. Net proceeds of the issue, after commissions and expenses, are approximately $230 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 K Shares were sold through a syndicate of Canadian underwriters led by BMO Capital Markets, CIBC, RBC Capital Markets Inc. and Scotia Capital Inc. and that also included TD Securities Inc., Cormark Securities Inc., Desjardins Securities Inc., GMP Securities L.P. and National Bank Financial Inc.

FFH.PR.K is a FixedReset, 5.00%+351, announced March 12. The greenshoe was for 2-million shares, so the option was not completely exercised. FFH.PR.K will be tracked by HIMIPref™, but assigned to the Scraps index on credit concerns.

FFH.PR.K traded 433,256 shares today in a range of 24.63-80 before closing at 24.68-69, 8×45. Vital statistics are:

Maturity Type : Limit Maturity
Maturity Date : 2042-03-21
Maturity Price : 23.05
Evaluated at bid price : 24.68
Bid-YTW : 5.12 %

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