Fairfax Financial Holdings Limited Successfully Completes $750 Million Senior Notes Offering and Announces Early Redemption of Allied World Notes
June 25, 2024, 3:39 am
Fairfax
Location: Canada, Ontario, Toronto
Employees: 10001+
Founded date: 1985
Total raised: $2.17B
Location: United States, District of Columbia, Washington
Employees: 1001-5000
Founded date: 1934
Total raised: $392.5M
Fairfax Financial Holdings Limited, a prominent player in the financial industry, has recently concluded a significant senior notes offering totaling a substantial $750 million. This offering included a combination of 6.100% senior notes due in 2055 and an additional $150 million of 6.000% senior notes due in 2033. With the completion of this offering, Fairfax now has a total of $750 million in aggregate principal amount of notes outstanding in this series.
In conjunction with the closing of the offering, Fairfax entered into a customary registration rights agreement, demonstrating their commitment to transparency and compliance in their financial transactions. The company has earmarked the net proceeds from this offering for the redemption of all outstanding $500 million aggregate principal amount of 4.35% Senior Notes due in 2025, known as the Allied World Notes, which are held by their subsidiary, Allied World Assurance Company Holdings I, Ltd. Any remaining funds will be utilized for general corporate purposes, highlighting Fairfax's strategic financial planning.
Fairfax has already taken steps towards the early redemption of the Allied World Notes by delivering a notice of redemption to Allied World's trustee. The redemption is scheduled for July 24, 2024, with the redemption price based on the value of the remaining scheduled payments on the Allied World Notes, to be calculated on July 19, 2024, along with accrued and unpaid interest, if applicable. Currently, there is $500 million aggregate principal amount of Allied World Notes outstanding, underscoring the significant financial implications of this redemption.
The offering of these senior notes was conducted exclusively through private placements, targeting qualified institutional buyers under Rule 144A of the U.S. Securities Act of 1933, as well as certain non-U.S. persons in offshore transactions under Regulation S of the Securities Act. It is important to note that these notes have not been registered under the Securities Act and may not be offered or sold in the United States without proper registration or exemption. Similarly, the notes are not qualified for sale under the securities laws of any Canadian province or territory, emphasizing the careful consideration of regulatory requirements in financial transactions.
Fairfax Financial Holdings Limited operates as a holding company with a primary focus on property and casualty insurance, reinsurance, and investment management. The company's diverse portfolio and strategic investments position them as a key player in the financial services sector.
For further information on Fairfax Financial Holdings Limited and their recent financial transactions, interested parties can reach out to John Varnell, Vice President of Corporate Development, at (416) 367-4941. The company's forward-looking statements highlight potential risks and uncertainties that may impact their future performance, underscoring the importance of diligent risk management and strategic planning in the financial industry.
In conjunction with the closing of the offering, Fairfax entered into a customary registration rights agreement, demonstrating their commitment to transparency and compliance in their financial transactions. The company has earmarked the net proceeds from this offering for the redemption of all outstanding $500 million aggregate principal amount of 4.35% Senior Notes due in 2025, known as the Allied World Notes, which are held by their subsidiary, Allied World Assurance Company Holdings I, Ltd. Any remaining funds will be utilized for general corporate purposes, highlighting Fairfax's strategic financial planning.
Fairfax has already taken steps towards the early redemption of the Allied World Notes by delivering a notice of redemption to Allied World's trustee. The redemption is scheduled for July 24, 2024, with the redemption price based on the value of the remaining scheduled payments on the Allied World Notes, to be calculated on July 19, 2024, along with accrued and unpaid interest, if applicable. Currently, there is $500 million aggregate principal amount of Allied World Notes outstanding, underscoring the significant financial implications of this redemption.
The offering of these senior notes was conducted exclusively through private placements, targeting qualified institutional buyers under Rule 144A of the U.S. Securities Act of 1933, as well as certain non-U.S. persons in offshore transactions under Regulation S of the Securities Act. It is important to note that these notes have not been registered under the Securities Act and may not be offered or sold in the United States without proper registration or exemption. Similarly, the notes are not qualified for sale under the securities laws of any Canadian province or territory, emphasizing the careful consideration of regulatory requirements in financial transactions.
Fairfax Financial Holdings Limited operates as a holding company with a primary focus on property and casualty insurance, reinsurance, and investment management. The company's diverse portfolio and strategic investments position them as a key player in the financial services sector.
For further information on Fairfax Financial Holdings Limited and their recent financial transactions, interested parties can reach out to John Varnell, Vice President of Corporate Development, at (416) 367-4941. The company's forward-looking statements highlight potential risks and uncertainties that may impact their future performance, underscoring the importance of diligent risk management and strategic planning in the financial industry.