Fairfax Financial invests C$150 million in Mosaic Capital

On January 26, 2017, Mosaic Capital Corporation ("Mosaic") closed of its previously announced private placement to Fairfax Financial Holdings Limited and certain of its subsidiaries (collectively "Fairfax") of: (i) C$100 million aggregate principal amount of 6% senior preferred securities; (ii) C$50 million aggregate principal amount of 5% senior secured debentures; and (iii) common share purchase warrants entitling Fairfax to acquire up to 17,026,106 common shares of Mosaic at a price of C$8.81 per common share until January 26, 2024. If the warrants are fully exercised, Fairfax would own approximately 66% of the currently issued and outstanding common shares of Mosaic.

Mosaic will use the net proceeds of the offering to fund the redemption of Mosaic's 10% perpetual preferred securities and series A preferred shares, the retraction of Mosaic's private yield securities, and for general corporate purposes.

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

Mosaic is a Canadian investment company that owns a portfolio of established businesses which span a diverse range of industries and geographies.

Further information can be found on Canada Newswire's website.