Fairfax raises C$1.325 billion to fund its acquisition of Brit PLC

On February 16, 2015, Fairfax Financial Holdings Limited (Fairfax) reached an agreement with Brit PLC (Brit) to acquire all of outstanding shares of Brit, for an aggregate purchase price of US$1.88 billion. The acquisition, which closed on July 8, 2015, was funded, in part, from the net proceeds of Fairfax's issuance of C$1.325 billion in debt and equity securities, which closed on March 3, 2015.

Subordinate Voting Shares

Pursuant to the agreement announced February 19, 2015, Fairfax issued 1,000,000 subordinate voting shares, as well as 150,000 shares issued pursuant to the exercise in full of the underwriters' over-allotment option, at a price of C$650.00 per share to a syndicate of underwriters led by BMO Capital Markets for gross proceeds of C$747.5 million.

Preferred Shares, Series M

Under a separate agreement, Fairfax issued 8 million Series M preferred shares, at a price of C$25.00 per share, to a syndicate of Canadian underwriters led by BMO Capital Markets, RBC Capital Markets and Scotia Capital Inc. The underwriters exercised their option to purchase an additional 1,200,000 shares at the same price, which increased the total gross proceeds of the offering to C$230 million.

Senior Notes

Fairfax also completed its issuance of senior notes due 2025 in an aggregate principal amount of C$350 million to a syndicate of underwriters led by BMO Capital Markets, RBC Capital Markets and Scotiabank. The notes, which were also announced on February 20, 2015, are unsecured obligations of Fairfax, priced at C$99.114 per C$100 principal amount of senior notes, and pay a fixed rate of interest of 4.95% per annum.

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

Further information can be found on Fairfax's website: Acquisition and Financing.