Fairfax Announces Reset Dividend Rate on Its Series I Preferred Shares and Quarterly Dividend on Series C, D, E, F, G, H, I, ...
December 02 2020 - 5:02PM
Fairfax Financial Holdings Limited (“Fairfax”) (TSX: FFH and FFH.U)
announces that it has determined the fixed dividend rate on its
Cumulative 5-Year Rate Reset Preferred Shares, Series I (the
“Series I Shares”) (TSX: FFH.PR.I) for the five years commencing
January 1, 2021 and ending December 31, 2025. The fixed quarterly
dividends on the Series I Shares during that period, if and when
declared, will be paid at an annual rate of 3.327% (C$0.207938 per
share per quarter).
Holders of Series I Shares have the right, at
their option, exercisable not later than 5:00 p.m. (Toronto time)
on December 16, 2020, to convert all or part of their Series I
Shares, on a one-for-one basis, into Cumulative Floating Rate
Preferred Shares, Series J (the “Series J Shares”) (TSX: FFH.PR.J),
effective December 31, 2020. The quarterly floating rate dividends
on the Series J Shares will be paid at an annual rate, calculated
for each quarter, of 2.85% over the annual yield on three-month
Government of Canada treasury bills. The actual quarterly dividend
rate in respect of the December 31, 2020 to March 30, 2021 dividend
period for the Series J Shares will be 0.72962% (2.95901% on an
annualized basis) and the dividend for such dividend period, if and
when declared, will be C$0.18240 per share, payable on March 30,
2021.
Holders of Series J Shares also have the right,
at their option, exercisable not later than 5:00 p.m. (Toronto
time) on December 16, 2020, to convert all or part of their Series
J Shares, on a one-for-one basis, into Series I Shares, effective
December 31, 2020. Holders of the Series J Shares who elect to
convert their shares by the conversion deadline will receive Series
I Shares effective December 31, 2020 and will be entitled to
receive, if and when declared, the fixed-rate dividend as described
above.
Holders of Series I Shares are not required to
elect to convert all or any part of their Series I Shares into
Series J Shares and holders of Series J Shares are not required to
elect to convert all or any part of their Series J Shares into
Series I Shares. Holders of the Series I Shares who do not elect to
convert their shares by the conversion deadline will retain their
Series I Shares and will receive the fixed-rate dividend as
described above (subject to the automatic conversion features
described below). Holders of the Series J Shares who do not elect
to convert their shares by the conversion deadline will retain
their Series J Shares and will receive the floating-rate dividend
as described above (subject to the automatic conversion features
described below).
As provided in the share conditions of the
Series I Shares and the Series J Shares: (i) if Fairfax determines
that there would be fewer than 1,000,000 Series I Shares
outstanding after December 31, 2020, all remaining Series I Shares
will be automatically converted into Series J Shares on a
one-for-one basis effective December 31, 2020 and Fairfax will
cause the return of all Series J Shares tendered for conversion
into Series I Shares; and (ii) if Fairfax determines that there
would be fewer than 1,000,000 Series J Shares outstanding after
December 31, 2020, all remaining Series J Shares will be
automatically converted into Series I Shares on a one-for-one basis
effective December 31, 2020 and Fairfax will cause the return of
all Series I Shares tendered for conversion into Series J
Shares.
There are currently 10,465,553 Series I Shares
and 1,534,447 Series J Shares outstanding. The Series I Shares and
the Series J Shares are listed on the Toronto Stock Exchange under
the trading symbols “FFH.PR.I” and “FFH.PR.J”, respectively.
Fairfax also announces that it has declared the
following quarterly dividends per share on its preferred
shares:
Series of Preferred Shares |
Dividend (C$) |
Payment Date |
Record Date |
Series C |
0.294313 |
December 31, 2020 |
December 15, 2020 |
Series D |
0.20788 |
December 30, 2020 |
Series E |
0.198938 |
December 31, 2020 |
Series F |
0.14550 |
December 30, 2020 |
Series G |
0.185125 |
December 31, 2020 |
Series H |
0.17070 |
December 30, 2020 |
Series I |
0.23175 |
December 31, 2020 |
Series J |
0.18898 |
December 30, 2020 |
Series K |
0.291938 |
December 31, 2020 |
Series M |
0.312688 |
December 31, 2020 |
Applicable Canadian withholding tax will be
applied to dividends payable to non-residents of Canada.
Fairfax has also determined the quarterly
dividend rates in respect of the December 31, 2020 to March 30,
2021 dividend period for its other floating rate preferred shares.
The rates, together with the dividends per share payable for such
period (if and when declared), are set forth below:
Series of Preferred Shares |
Rate (%) |
Annualized Rate (%) |
Dividend (C$) |
Series D |
0.80359 |
3.25901 |
0.20090 |
Series F |
0.55948 |
2.26901 |
0.13987 |
Series H |
0.65811 |
2.66901 |
0.16453 |
Fairfax is a holding company which, through its
subsidiaries, is engaged in property and casualty insurance and
reinsurance and the associated investment management.
For further information contact: |
|
John Varnell,
Vice President, Corporate Development, at (416) 367-4941 |
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