FFH.PR.C Settles Soft on Reasonable Volume; Greenshoe Exercised

Fairfax Financial Holdings has announced:

has completed its previously announced public offering of Cumulative 5-Year Rate Reset Preferred Shares, Series C (the “Series C Shares”) in Canada. As a result of the underwriters exercising their $50 million option in full, Fairfax issued an additional 2,000,000 Series C Shares for a total issue of 10,000,000 Series C Shares and total gross proceeds of $250 million. Net proceeds of the issue, after commissions and expenses, are approximately $243 million.

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

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.

This is a cumulative FixedReset issue, 5.75%+315 announced last week.

The issue traded 271,990 shares in a range of 24.80-94 before closing at 24.85-90, 17×311. Vital statistics are:

FFH.PR.C FixedReset 271,990 YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2039-10-05
Maturity Price : 24.80
Evaluated at bid price : 24.85
Bid-YTW : 5.75 %

FFH.PR.C is tracked by HIMIPref™, but is relegated to the Scraps subindex on credit concerns.

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