Fairfax establishes new credit facility; declares annual dividend

Fairfax Financial Holdings Ltd. says it has set up a new revolving letter of credit with a syndicate of banks. The US$300 million credit facility will be used to provide letters of credit for reinsurance contracts of nSpire Re provided for the benefit of other Fairfax subsidiaries. Fairfax is holding assets in trust from premiums from its corporate insurance cover to secure the credit facility.
Fairfax notes that the US$161.9 million in letters of credit it already has will be cancelled or transferred to the new facility.
The company also announced it has declared an annual dividend of US$1.40 per share on its outstanding voting shares, to be paid on January 28. At the end of 2002, the company paid an annual dividend of US$1.00.