Fairfax Financial Holdings Ltd. announced today the pricing of an underwritten public offering of 9 million shares of Odyssey Re Holdings Corp. common stock.
The offering will be priced US$34.60 per share, resulting in net proceeds to Fairfax of approximately US$300 million.
Fairfax has granted the underwriters an option to purchase up to 1,350,000 additional shares of common stock to cover over-allotments, if any. The offering was jointly led by Citigroup Corporate and Investment Banking and Wachovia Capital Markets, LLC.
Fairfax, which will continue to own a majority of the shares of Odyssey Re after the offering, intends to use the proceeds it receives from the offering for general corporate purposes, which may include opportunistically effecting open market or privately negotiated repurchases of its outstanding debt or shares. Odyssey Re will not receive any proceeds from the sale of the shares.