Fairfax says minimum tender condition met in exchange offer for 7¾% notes

By Angela McDaniels

Seattle, May 31 - Fairfax Financial Holdings Ltd. has received tenders for $280.865 million of its $464.2 million 7¾% notes due 2012 as of May 30, according to a company news release.

The company began an exchange offer for the notes on May 10 under which noteholders will receive $1,000 principal amount of 7¾% notes due 2017 for each $1,000 principal amount of 7¾% notes due 2012 tendered.

Noteholders will also receive accrued interest to the settlement date, which is expected to be June 18.

The exchange offer deadline is 9 a.m. ET on June 14.

The offer is conditioned on Fairfax receiving tenders from holders of at least $200 million of the notes. The condition has been met, and noteholders who tendered by May 30, the early participation date, will receive an early participation payment of $40 per $1,000 principal amount of notes, or $11.2 million in total.

The early participation payment was previously $30, and the early participation deadline was May 23. The company increased the payment and extended the deadline on May 24, on which day Fairfax also changed the maturity of the new notes to 2017 from 2022 and pushed the offer expiration date to June 14 from June 8.

Merrill Lynch & Co. (888 654-8637 or collect 212 449-4914), BMO Capital Markets Corp. and Ferris, Baker Watts, Inc. are the dealer managers in the United States. Merrill Lynch Canada Inc. and BMO Nesbitt Burns Inc. are acting as dealer managers in Canada. D.F. King & Co., Inc. (888 628-9011) is the exchange agent and information agent.

Fairfax is a financial services company based in Toronto.

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