Financial services holding company Fairfax Financial has agreed to increase its investment in The Brick Group Income Fund, Fairfax said Monday.

Under a private placement, Fairfax, which is one of the Brick’s largest shareholders, will boost its acquisition of debt units to be issued by the Brick by $5 million to a total of $45 million.

The private placement is part of a larger recapitalization transaction by the Brick which includes an offering of $120 million of debt units, consisting of $90 million of debt units via private placement and $30 million of debt units via a public offering.

Each Debt Unit consists of $1,000 principal amount of 12% senior secured debentures maturing May 30, 2014 and 1,000 warrants. Each warrant entitles the holder to purchase one Class A unit of the Brick at any time prior to 17:00 ET on May 27, 2014 at an exercise price of $1 per Class A Unit.

In addition to the private placement, Fairfax has agreed to provide a stand-by commitment to purchase the debt units offered under the Public Offering that are not acquired by public investors in exchange for a fee.

Assuming full exercise of the warrants to be acquired under the private placement by Fairfax (and no exercise of warrants by other holders), Fairfax’s total holdings in the Brick will be 53,380,200 Class A Units or approximately 53.83% of the total Class A units outstanding.

“The debt units are being purchased for investment purposes,” Fairfax said.

IE