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.

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