Fairfax Financial Holdings closes $650M senior notes offering

Fairfax Financial Holdings Limited



News Release

Not for distribution to U.S. news wire services or dissemination in the United States.

FAIRFAX COMPLETES C$650 MILLION SENIOR NOTES OFFERING

Toronto, Ontario (December 4, 2017) – Fairfax Financial Holdings Limited (“Fairfax”) (TSX: FFH and FFH.U) has completed its previously announced offering of C$650 million in aggregate principal amount of 4.25% Senior Notes due 2027 (the “Offering”).

The Senior Notes were offered through a syndicate of dealers led by BMO Capital Markets and RBC Capital Markets, as joint bookrunners. The Senior Notes are unsecured obligations of Fairfax and pay a fixed rate of interest of 4.25% per annum.

Fairfax intends to use C$430.6 million of the net proceeds from the Offering to redeem the C$388.4 million outstanding principal amount of Fairfax’s 7.5% senior notes due August 19, 2019 (plus accrued and unpaid interest thereon and the applicable premium) (the “2019 Notes”), and to use the balance to refinance or repay other outstanding debt or other corporate obligations of Fairfax and its subsidiaries and for general corporate purposes. This may include the redemption or repurchase of certain of Fairfax’s other previously issued senior unsecured notes. As of the date of this press release, with the exception of the 2019 Notes, Fairfax has not made any determination as to the specific debt or other obligations to be repaid, nor the amount, timing or method of repayment. Except for the redemption of the 2019 Notes, any repurchase of senior notes will be subject to market conditions, and there can be no assurance that senior notes will be available for repurchase on terms acceptable to Fairfax. Any proceeds not used to refinance or repay debt or other corporate obligations will be used to augment Fairfax’s cash position, to pursue potential acquisition opportunities, to increase short-term investments and marketable securities held at the holding company level and/or for other general corporate purposes.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. This press release is not an offer of securities for sale in the United States, and the securities may not be offered or sold in the United States absent registration or an exemption from the registration requirements. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended.

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

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For further information, contact: John Varnell, Vice President, Corporate Development, at (416) 367-4941