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

Mon Jan 21, 2013 9:13am EST

* Reuters is not responsible for the content in this press release.


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

    Fairfax Financial Holdings Limited (TSX:FFH)(TSX:FFH.U) has completed its
previously announced offering of $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 remains outstanding after giving effect to this
offering. Net proceeds of the issue, after commissions and expenses of
the issue, are approximately $259 million.

    The Senior Notes were offered through a syndicate of dealers led by BMO
Capital Markets, Bank of America Merrill Lynch, CIBC, RBC Capital Markets
and Scotiabank Global Banking and Markets, that included TD Securities,
Citi Global Markets Canada, Cormark Securities, Canaccord Genuity, GMP
Securities, HSBC Securities and National Bank Financial. The Senior Notes
are unsecured obligations of Fairfax and 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, 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 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. 

Fairfax Financial Holdings Limited
John Varnell
Vice President, Corporate Development
(416) 367-4941

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

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