Fairfax greenshoe exercised, raising convertibles to $200 million

New York, July 18 - Fairfax Financial Holdings Ltd. said underwriters of its recent offering of convertible senior debentures due 2023 exercised the $50 million over-allotment option in full, raising the size of the deal to $200 million.

The Toronto financial services company originally sold $150 million of the convertibles after the close on July 8 to yield 5.0% with a 45% initial conversion premium.

Lead manager for the Rule 144A deal was Banc of America Securities.

Of the proceeds, Fairfax said it would use up to $20 million to pay for subordinate voting shares purchased contemporaneously with the offering.

Remaining proceeds will be used for general corporate purposes, including particularly investing in cash, short-term investments and marketable securities and repurchasing or repaying debt. In addition, Fairfax said it may use a portion of proceeds to purchase additional subordinate voting shares in the future.

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