Fairfax makes U.S. debenture offering

Fairfax Financial Holdings (TSX, NYSE: FFH) will offer US$150 million in convertible senior debentures due 2023, the company announces.
Fairfax plans to use about US$20 million of the net procedds to pay for subordinated voting shares purchased concurrently with the offering. The remainder will be used for “general corporate purposes” including investing in cash, short-term investments and marketable securities, and repurchasing or repaying debt. Some proceeds may be used to purchase subordinated voting shares in the future.
The debentures will be convertible into Fairfax subordinated voting shares and puttable by holders at five-year intervals starting July, 2008.
The offering is made on a private placement basis to qualified institutional buyers in the U.S., but not in Canada.