Fairfax Financial Holdings Limited (TSX:FFH) has completed its previously announced public offering of Preferred Shares, Series G, for gross proceeds of $250 million, the company announced on Wednesday.
As a result of the underwriters’ exercising in full their option to purchase an additional 2 million Series G shares, Fairfax has issued 10 million of the shares. Net proceeds of the issue, after commissions and expenses, are approximately $242 million.
Fairfax said it intends to use the net proceeds of the offering to augment its cash position, to increase short-term investments and marketable securities held at the holding company level, to retire outstanding debt and other corporate obligations from time to time, and for general corporate purposes.
The Series G Shares were sold through a syndicate of Canadian underwriters led by BMO Capital Markets, CIBC, RBC Capital Markets and Scotia Capital, and that also included TD Securities, National Bank Financial, Cormark Securities, GMP Securities, Canaccord Genuity, Desjardins Securities and HSBC Securities (Canada).
IE
Fairfax raises $250M in preferred share offering
Proceeds to be used to augment firm’s cash position, retire outstanding debt
- By: IE Staff
- July 28, 2010 July 28, 2010
- 07:53