Fairfax Financial in-market with $50 million add-on to 7¾% notes

By Paul A. Harris

St. Louis, Aug. 23 - Fairfax Financial Holdings Ltd. is in-market with a $50 million add-on to its 7¾% senior notes due April 26, 2012 (existing ratings Ba3/BB), according to a market source.

Terms on the deal are expected to emerge on Tuesday.

Banc of America Securities LLC is the lead bank on the deal.

The market source had not heard any price talk on the deal. The existing bonds were trading at 97.5 bid, 98.5 offered late in Monday's session, the source said.

The bonds are non-callable for life.

Proceeds will be used for general corporate purposes, including the repayment of outstanding debt.

A total of $160.4 million of the notes were issued in an exchange offer that closed on April 29, according to a company news release.

The notes, along with cash, were offered in exchange for TIG Holdings Inc.'s existing 8 1/8% notes due 2005, Fairfax's 7 3/8% notes due 2006 and Fairfax's 6 7/8% notes due 2008.

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