Fairfax Announces Reset Dividend Rate on its Series G Preferred Shares and Quarterly Dividend on Series C, D, E, F, G, H, I, ...
September 01 2020 - 4:02PM
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 G (the
“Series G Shares”) (TSX: FFH.PR.G) for the five years commencing
October 1, 2020 and ending September 30, 2025. The fixed quarterly
dividends on the Series G Shares during that period, if and when
declared, will be paid at an annual rate of 2.962% (C$0.185125 per
share per quarter).
Holders of Series G Shares have the right, at
their option, exercisable not later than 5:00 p.m. (Toronto time)
on September 15, 2020, to convert all or part of their Series G
Shares, on a one-for-one basis, into Cumulative Floating Rate
Preferred Shares, Series H (the “Series H Shares”) (TSX: FFH.PR.H),
effective September 30, 2020. The quarterly floating rate dividends
on the Series H Shares will be paid at an annual rate, calculated
for each quarter, of 2.56% over the annual yield on three-month
Government of Canada treasury bills. The actual quarterly dividend
rate in respect of the September 30, 2020 to December 30, 2020
dividend period for the Series H Shares will be 0.68282% (2.70900%
on an annualized basis) and the dividend for such dividend period,
if and when declared, will be C$0.17070 per share, payable on
December 30, 2020.
Holders of Series H Shares also have the right,
at their option, exercisable not later than 5:00 p.m. (Toronto
time) on September 15, 2020, to convert all or part of their Series
H Shares, on a one-for-one basis, into Series G Shares, effective
September 30, 2020. Holders of the Series H Shares who elect to
convert their shares by the conversion deadline will receive Series
G Shares effective September 30, 2020 and will be entitled to
receive, if and when declared, the fixed-rate dividend as described
above.
Holders of Series G Shares are not required to
elect to convert all or any part of their Series G Shares into
Series H Shares and holders of Series H Shares are not required to
elect to convert all or any part of their Series H Shares into
Series G Shares. Holders of the Series G Shares who do not elect to
convert their shares by the conversion deadline will retain their
Series G Shares and will receive the fixed-rate dividend as
described above (subject to the automatic conversion features
described below). Holders of the Series H Shares who do not elect
to convert their shares by the conversion deadline will retain
their Series H 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 G Shares and the Series H Shares: (i) if Fairfax determines
that there would be fewer than 1,000,000 Series G Shares
outstanding after September 30, 2020, all remaining Series G Shares
will be automatically converted into Series H Shares on a
one-for-one basis effective September 30, 2020 and Fairfax will
cause the return of all Series H Shares tendered for conversion
into Series G Shares; and (ii) if Fairfax determines that there
would be fewer than 1,000,000 Series H Shares outstanding after
September 30, 2020, all remaining Series H Shares will be
automatically converted into Series G Shares on a one-for-one basis
effective September 30, 2020 and Fairfax will cause the return of
all Series G Shares tendered for conversion into Series H
Shares.
There are currently 7,432,952 Series G Shares
and 2,567,048 Series H Shares outstanding. The Series G Shares and
the Series H Shares are listed on the Toronto Stock Exchange under
the trading symbols “FFH.PR.G” and “FFH.PR.H”, 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 |
September 30, 2020 |
September 15, 2020 |
Series D |
0.21456 |
September 29, 2020 |
Series E |
0.198938 |
September 30, 2020 |
Series F |
0.15218 |
September 29, 2020 |
Series G |
0.207375 |
September 30, 2020 |
Series H |
0.17738 |
September 29, 2020 |
Series I |
0.23175 |
September 30, 2020 |
Series J |
0.19566 |
September 29, 2020 |
Series K |
0.291938 |
September 30, 2020 |
Series M |
0.312688 |
September 30, 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 September 30, 2020 to December 30,
2020 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 |
0.83153 |
3.29900 |
0.20788 |
Series F |
0.58199 |
2.30900 |
0.14550 |
Series J |
0.75591 |
2.99900 |
0.18898 |
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 |
Fairfax Financial (TSX:FFH)
Historical Stock Chart
From Apr 2024 to May 2024
Fairfax Financial (TSX:FFH)
Historical Stock Chart
From May 2023 to May 2024