Fairfax offers to pay $150 million in tender for debt

New York, Nov. 18 - Fairfax Financial Holdings Ltd. announced it is offering to pay up to $150 million in a cash tender offer for its debt securities and those of its wholly owned subsidiary TIG Holdings, Inc.

Pricing for the notes covered by the tender will be based on a fixed spread over a reference U.S. Treasury security.

Details are as follows, with the highest priority securities first (total amount includes the early tender payment):

* TIG's $38.584 million of 8 1/8% notes due 2005; 35 basis points over the 1 5/8% Treasury due March 31, 2005; the early tender payment is $40.00;

* Fairfax's $130.274 million of 7 3/8% notes due 2006; 50 basis points over the 1 5/8% Treasury due Feb. 28, 2006; the early tender payment is $40.00;

* Fairfax's $99.2225 million of 6 7/8% notes due 2008; 125 basis points over the 2 5/8% Treasury due May 15, 2008; the early tender payment is $40.00;

* TIG's 8.597% capital securities due 2027; a fixed price of $850 per $1,000 principal amount; the early tender payment is $40.00.

The early tender payment will only be made to holders who tender by 5 p.m. ET on Dec. 2. The offer ends at midnight ET on Dec. 20. Pricing will be fixed on Dec. 7.

Holders will receive accrued interest up to but excluding the settlement date.

The Toronto-based financial services holding company said the offer is subject to conditions including the closing of Fairfax's previously announced issuance of $300 million of subordinate voting shares.

Banc of America Securities is exclusive dealer manager (contact High Yield Special Products at 888 292-0070 or call collect 704 388-4813). D.F. King & Co., Inc. is the information agent (800 859-8509 or call collect 212 269-5550).

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