Fairfax Initiates C$700 Million Senior Debt Securities Sale Offering
Fairfax Financial Holdings Limited, a leading company in property and casualty insurance, reinsurance, and investment management, has announced a Senior Notes offering in August 2025. The offering aims to raise C$700 million, with C$400 million in 2035 Notes and C$300 million in 2055 Notes.
The 2035 Notes will pay a fixed rate of interest of 4.45% per annum, while the 2055 Notes will offer a fixed rate of 5.10% per annum. These notes are unsecured obligations of Fairfax and were priced slightly below par at approximately C$99.8 and C$99.6 per C$100 principal amount, respectively.
The offering is led by a syndicate of dealers, including National Bank Financial Inc., RBC Dominion Securities Inc., Scotia Capital Inc., and TD Securities Inc., among others.
Use of Proceeds and Credit Ratings
The net proceeds from the offering will support Fairfax's corporate actions and financial strategies. The notes have received credit ratings of BBB+ by Fitch Ratings and “a-” (Excellent) by AM Best, reflecting strong credit quality and the company's position in the insurance, reinsurance, and investment management sectors.
Risks and Regulations
Certain statements in this press release may constitute "forward-looking statements" and are subject to known and unknown risks, uncertainties, and other factors. The Senior Notes are not being registered under the United States Securities Act of 1933, and they may not be offered or sold in the United States absent registration or an exemption.
Risks associated with the proposed Offering include the failure to successfully complete it and the inability to complete acquisitions and other strategic transactions on the terms and timeframes contemplated. Prospective investors are advised to read the base shelf prospectus and shelf prospectus supplement before making an investment decision.
Important Information
The electronic or paper copy of the shelf prospectus supplement can be obtained from National Bank Financial Inc., RBC Dominion Securities Inc., Scotia Capital Inc., or TD Securities Inc. The base shelf prospectus is accessible, and the shelf prospectus supplement will be accessible within two business days, through SEDAR.
The risks associated with Fairfax are described in its most recently issued Annual Report and base shelf prospectus.
Purpose of the Offering
The purpose of the offering is to provide Fairfax with financial flexibility and support its ongoing business operations and growth initiatives. The company plans to use the net proceeds of the Offering for refinancing, repaying or redeeming outstanding debt, equity or other corporate obligations, pursuing potential acquisition or investment opportunities, and general corporate purposes.
[1] National Bank Financial Inc. [2] Fitch Ratings [3] RBC Dominion Securities Inc. [4] Scotia Capital Inc. [5] TD Securities Inc.
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