Fairfax Announces Reset Dividend Rate on Its Series K Preferred Shares and Quarterly Dividend on Series C, D, E, F, G, H, I, J, K and M Preferred Shares and Quarterly Dividend Rate for Series D, F, H and J Preferred Shares
02 Março 2022 - 7:02PM
Fairfax Financial Holdings Limited (TSX: FFH and FFH.U) (“Fairfax”)
announces that it has determined the fixed dividend rate on its
Cumulative 5-Year Rate Reset Preferred Shares, Series K (“Series K
Shares”) (TSX: FFH.PR.K) for the five years commencing April 1,
2022 and ending March 31, 2027. The fixed quarterly dividends on
the Series K Shares during that period, if and when declared, will
be paid at an annual rate of 5.045% (C$0.315313 per share per
quarter).
Holders of Series K Shares have the right, at
their option, exercisable not later than 5:00 pm (Toronto time) on
March 16, 2022, to convert all or part of their Series K Shares, on
a one-for-one basis, into Cumulative Floating Rate Preferred
Shares, Series L (“Series L Shares”), effective March 31, 2022. The
quarterly floating rate dividends on the Series L Shares will be
paid at an annual rate, calculated for each quarter, of 3.51% over
the annual yield on three-month Government of Canada treasury
bills. The actual quarterly dividend rate in respect of the April
1, 2022 to June 29, 2022 dividend period for the Series L Shares
will be 1.01712% (4.12500% on an annualized basis) and the dividend
for such dividend period, if and when declared, will be C$0.25428
per share, payable on June 29, 2022.
Holders of Series K Shares are not required to
elect to convert all or any part of their Series K Shares into
Series L Shares. Holders of the Series K Shares who do not elect to
convert their shares by the conversion deadline will retain their
Series K Shares and will receive the fixed-rate dividend as
described above (subject to the automatic conversion features
described below).
As provided in the share conditions of the
Series K Shares, (i) if Fairfax determines that there would be
fewer than 1,000,000 Series K Shares outstanding after March 31,
2022, all remaining Series K Shares will be automatically converted
into Series L Shares on a one-for-one basis effective March 31,
2022; and (ii) if Fairfax determines that there would be fewer than
1,000,000 Series L Shares outstanding after March 31, 2022, no
Series K Shares will be permitted to be converted into Series L
Shares. There are currently 9,500,000 Series K Shares
outstanding.
The Toronto Stock Exchange (“TSX”) has
conditionally approved the listing of the Series L Shares effective
upon conversion. Listing of the Series L Shares is subject to
Fairfax fulfilling all the listing requirements of the TSX and,
upon approval, the Series L Shares will be listed on the TSX under
the trading symbol “FFH.PR.L”.
Fairfax also announces that it has declared the
following quarterly dividends per share on its preferred
shares:
Series of Preferred Shares |
Dividend (C$) |
Payment Date |
Record Date |
Series C |
0.294313 |
March 31, 2022 |
March 15, 2022 |
Series D |
0.20213 |
March 30, 2022 |
Series E |
0.198938 |
March 31, 2022 |
Series F |
0.14110 |
March 30, 2022 |
Series G |
0.185125 |
March 31, 2022 |
Series H |
0.16576 |
March 30, 2022 |
Series I |
0.207938 |
March 31, 2022 |
Series J |
0.18364 |
March 30, 2022 |
Series K |
0.291938 |
March 31, 2022 |
Series M |
0.312688 |
March 31, 2022 |
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 March 31, 2022 to June 29, 2022
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 |
0.93942 |
3.76799 |
0.23485 |
Series F |
0.69259 |
2.77799 |
0.17315 |
Series H |
0.79232 |
3.17799 |
0.19808 |
Series J |
0.86462 |
3.46799 |
0.21616 |
Fairfax is a holding company which, through its
subsidiaries, is primarily 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
Fairfax Financial (TSX:FFH.U)
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