NU Online News Service, June 18, 11:33 a.m. EDT
Canada-based property and casualty insurance and reinsurance company Fairfax Financial Holdings Ltd. said it plans to offer Canadian $275 million (U.S. $268 million at the current exchange rate) senior notes at a fixed annual interest rate of 7.25 percent due by 2020.
The notes will be offered through a syndicate of dealers to be led by BMO Capital Markets, CIBC World Markets Inc. and RBC Capital Markets, that includes Scotia Capital, TD Securities, National Bank Financial, Bank of America Merrill Lynch, Citi Global Markets Canada Inc., Cormark Securities, GMP Securities, HSBC Securities, Desjardins Securities and Canaccord Genuity Corp.
The notes will be unsecured obligations of Fairfax, the company said, and it intends to use the net proceeds of the proposed offering to augment its cash position, increase short-term investments and marketable securities held at the holding company level, retire outstanding debt and other corporate obligations from time to time, and for general corporate purposes.
Fairfax said it intends to file a prospectus with Canadian securities regulatory authorities. Details will be available at www.sedar.com.
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