Fairfax Financial continues issuer bid for 10 series of preferreds

By Susanna Moon

Chicago, Sept. 23 – Fairfax Financial Holdings Ltd. plans to hold another one-year normal course issuer bid for its subordinate voting shares and 10 series of preferred shares after the end of its current bid.

The issuer bid will run for about a year from Sept. 28 through Sept. 27, 2017.

According to a company announcement, Fairfax will buy up to

• 800,000 of its 23,034,939 outstanding subordinate voting shares, with a daily limit of 6,899;

• 601,538 of its 6,016,384 outstanding cumulative five-year rate reset preferred shares, series C, with a daily limit of 1,205;

• 356,601 of its 3,983,616 outstanding cumulative floating-rate preferred shares, series D, with a daily limit of 1,000;

• 396,896 of its 3,968,961 outstanding cumulative five-year rate reset preferred shares, series E, with a daily limit of 1,000;

• 357,204 of its 3,572,044 outstanding cumulative floating-rate preferred shares, series F, with a daily limit of 1,000;

• 743,295 of its 7,432,952 outstanding cumulative five-year rate reset preferred shares, series G, with a daily limit of 1,782;

• 256,704 of its 2,567,048 outstanding cumulative floating-rate preferred shares, series H, with a daily limit of 1,000;

• 1,046,555 of its 10,465,553 outstanding cumulative five-year rate reset preferred shares, series I, with a daily limit of 1,743;

• 153,444 of its 1,534,447 of outstanding cumulative floating-rate preferred shares, series J, with a daily limit of 1,000;

• 950,000 of its 9.5 million of outstanding cumulative five-year rate reset preferred shares, series K, with a daily limit of 2,184; and

• 920,000 of its 9.2 million outstanding cumulative five-year rate reset preferred shares, series M, with a daily limit of 1,695.

Fairfax said it may enter into a predefined plan with its broker to allow purchases under the bid at times during internal trading blackout periods.

The company said that it is making the issuer bid for the securities because buying them “in appropriate circumstances” represents “an attractive investment opportunity” and that doing so will enhance the value of the shares.

Under the company’s existing normal course issuer bid, Fairfax has purchased 116,403 of its subordinate voting shares and 76,904 of its series E preferreds during the past 12 months at weighted average prices per share of C$676.04 and C$14.21, respectively.

Fairfax’s current normal course issuer bid for the securities began Sept. 28, 2015 and will end Sept. 27.

Fairfax is a Toronto-based financial services holding company that owns property and casualty insurance and reinsurance and investment management subsidiaries.

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