Fairfax Launches $250 Million Re-Opening of 5.84% Senior Notes Due 2022

Wed Jan 16, 2013 3:43pm EST

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Marketwire

Fairfax Financial Holdings Limited

January 16, 2013 - 03:42:43 PM

Fairfax Launches $250 Million Re-Opening of 5.84% Senior Notes Due 2022

TORONTO, ONTARIO--(Marketwire - Jan. 16, 2013) - 

NOT FOR DISTRIBUTION TO US NEWSWIRE SERVICES OR FOR DISSEMINATION TO THE
UNITED STATES

(Note: All dollar amounts in this press release are expressed in Canadian
dollars.)

Fairfax Financial Holdings Limited (TSX:FFH)(TSX:FFH.U) announces that it
intends to offer $250 million in aggregate principal amount of a re-opening of
5.84% Senior Notes due 2022 at a price of $103.854 per $100 principal amount,
plus accrued interest, for an effective yield to maturity of 5.326%. The
original issuance of the Senior Notes was completed in October 2012. An
aggregate of $450 million of such Senior Notes will be outstanding after
giving effect to this offering.

The Senior Notes will be offered through a syndicate of dealers to be led by
BMO Capital Markets, CIBC World Markets, RBC Capital Markets, Scotia Capital
and Bank of America Merrill Lynch, that includes TD Securities, Cormark
Securities, Citi Global Markets Canada Inc., GMP Securities, HSBC Securities,
Canaccord Genuity Corp. and National Bank Financial. The Senior Notes will be
unsecured obligations of Fairfax and will pay a fixed rate of interest of
5.84% per annum. Fairfax intends to use the net proceeds of the offering to
augment its cash position, 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.

Fairfax intends to file a prospectus supplement to its short form base shelf
prospectus dated December 10, 2012 in respect of this offering with the
applicable Canadian securities regulatory authorities. Details of this
offering will be set out in the prospectus supplement which will be available
on the SEDAR website for the Company at www.sedar.com.

This press release shall not constitute an offer to sell or the solicitation
of an offer to buy nor shall there be any sale of these securities in any
jurisdiction in which such offer, solicitation or sale would be unlawful prior
to registration or qualification under the securities laws of any such
jurisdiction. This press release is not an offer of securities for sale in the
United States, and the securities may not be offered or sold in the United
States absent registration or an exemption from registration. The securities
have not been and will not be registered under the United States Securities
Act of 1933. 

Fairfax is a financial services holding company which, through its
subsidiaries, is engaged in property and casualty insurance and reinsurance
and investment management. 

FOR FURTHER INFORMATION PLEASE CONTACT: 
Fairfax Financial Holdings Limited
John Varnell
Vice President
(416) 367-4941


Media Contact:
Fairfax Financial Holdings Limited
Paul Rivett
Vice President, Operations
(416) 367-4941
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