Fairfax’s C$850 Million Senior Notes Offering

Torys LLP represented Fairfax in the offering.

On February 24, 2021, Fairfax Financial Holdings Limited announced that it will issue C$850 million in aggregate principal amount of senior notes due 2031 in a public offering to a syndicate of underwriters led by Scotiabank, BMO Capital Markets, and RBC Capital Markets as joint bookrunners. The senior notes will be unsecured obligations of Fairfax and will pay a fixed rate of interest of 3.95% per annum.

Fairfax intends to use the net proceeds of the offering to redeem (i) the C$450 million outstanding principal amount of its 5.84% senior notes due 2022 (plus accrued and unpaid interest thereon and the applicable premium); and (ii) the C$400 million outstanding principal amount of its 4.50% senior notes due 2023 (plus accrued and unpaid interest thereon and the applicable premium). The remainder, if any, will be used to refinance or repay other outstanding debt or corporate obligations and for general corporate purposes.

The offering is expected to close on or about March 1, 2021.

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

The Torys team included David Chaikof (Picture), Robbie Leibel, Emily Debono and Rayanna Smith (corporate/securities).

Involved fees earner: David Chaikof – Torys LLP; Emily Debono – Torys LLP; Robbie Leibel – Torys LLP; Rayanna Smith – Torys LLP;

Law Firms: Torys LLP;

Clients: Fairfax Financial;

Martina Bellini

Author: Martina Bellini