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Fairfax aims to reduce debt with US$445 million offering


March 24, 2004   by Canadian Underwriter


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In a move to reduce and refinance company debt, Toronto-based Fairfax Financial Holdings Ltd. will offer to exchange US$445 million in senior notes for a combination of cash value and new notes.
The offering involves up to US$275 million principal amount of Fairfax’s 7.375% senior notes due 2006, and up to US$170 million of its 6.875% senior notes due 2008.
“The purpose of the contemplated exchange offer is to refinance and reduce a portion of the Company’s outstanding debt and to diversify its debt maturity profile as part of the Company’s deleveraging plan, which is intended to strengthen its debt ratings to investment grade,” states a Fairfax release.
A further exchange of US$97.7 million of 8.125% senior notes due 2005 of TIG Holdings Inc. will also be offered to certain institutional investors, the company adds.


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