Fairfax Financial calls 5% debentures

By Jennifer Chiou

New York, Jan. 9 - Fairfax Financial Holdings Ltd. announced the Feb. 13 redemption of all of its 5% convertible senior debentures due 2023 at par plus accrued interest.

Until the close of business on Feb. 12, holders may elect to convert their holdings at a conversion rate of 4.7057 subordinate voting shares of Fairfax per $1,000 principal amount of notes, which is equal to a conversion price of $212.51 per subordinate voting share.

The company previously announced the convertibility of the securities, which arose because the company's subordinated voting shares sale price exceeded 120% of the conversion price of the debentures, $212.50, for at least 20 of the last 30 trading days of 2007's fourth quarter, meeting the conversion condition.

Bank of New York is the trustee and conversion agent for the notes.

Fairfax Financial is a Toronto-based insurer.

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