Proceeds from $350m transaction will help pay for Brit acquisition
Canadian insurer Fairfax has boosted the size of the bond issue it is undertaking to part-fund its purchase of Lloyd’s insurer Brit.
Fairfax had initially intended to issue $300m (£195m) of bonds, but has increased this to $350m.
The bonds will mature in 2025. They are being offered to investors through a syndicate of dealers led by RBC Capital Markets and Scotiabank.
They pay investors a fixed interest rate of 4.95% a year.
The bond issue makes up part of a $1.2bn capital raising that will be used to pay for Brit.
The capital raising includes a $650m issue of subordinate voting shares and a $200m issue of preferred shares.
Fairfax announced on 17 February that it would buy London-listed Brit for £1.22bn in cash.