0001104659-20-028095.txt : 20200303 0001104659-20-028095.hdr.sgml : 20200303 20200302192145 ACCESSION NUMBER: 0001104659-20-028095 CONFORMED SUBMISSION TYPE: 6-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20200302 FILED AS OF DATE: 20200303 DATE AS OF CHANGE: 20200302 FILER: COMPANY DATA: COMPANY CONFORMED NAME: FAIRFAX FINANCIAL HOLDINGS LTD/ CAN CENTRAL INDEX KEY: 0000915191 STANDARD INDUSTRIAL CLASSIFICATION: FIRE, MARINE & CASUALTY INSURANCE [6331] IRS NUMBER: 101728897 STATE OF INCORPORATION: Z4 FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 6-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-31556 FILM NUMBER: 20679276 BUSINESS ADDRESS: STREET 1: FAIRFAX FINANCIAL HOLDINGS LTD STREET 2: 95 WELLINGTON ST WEST STE 800 CITY: TORONTO STATE: A6 ZIP: M5J 2N7 BUSINESS PHONE: 4163674941 MAIL ADDRESS: STREET 1: FAIRFAX FINANCIAL HOLDINGS LTD STREET 2: 95 WELLINGTON ST WEST STE 800 CITY: TORONTO STATE: A6 ZIP: M5J 2N7 FORMER COMPANY: FORMER CONFORMED NAME: FAIRFAX FINANCIAL HOLDINGS LTD DATE OF NAME CHANGE: 19931122 6-K 1 a20-11498_16k.htm 6-K

 

 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

 

Form 6-K

 

Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934

 

For the month of: March 2020

 

Commission File Number: 001-31556

 

FAIRFAX FINANCIAL HOLDINGS LIMITED
(Name of Registrant)

 

95 Wellington Street West
Suite 800
Toronto, Ontario
Canada M5J 2N7
(Address of Principal Executive Offices)

 

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:

 

Form 20-F o

 

Form 40-F x

 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):    o

 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):    o

 

 

 

 

SIGNATURE

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

 

FAIRFAX FINANCIAL HOLDINGS LIMITED

 

 

 Date: March 2, 2020

By:

/s/ Peter Clarke

 

 

Name:

Peter Clarke

 

 

Title:

Vice President and Chief Operating Officer

 

2

 

EXHIBIT INDEX

 

Exhibit

 

Description of Exhibit

99.1

 

News Release dated March 2, 2020 titled Fairfax Announces Reset Dividend Rate on its Series E and Series M 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, J and N Preferred Shares

 

3

 EX-99.1 2 a20-11498_1ex99d1.htm EX-99.1

Exhibit 99.1

 

FAIRFAX News Release

TSX Stock Symbol: FFH and FFH.U

 

TORONTO, March 2, 2020

 

FAIRFAX ANNOUNCES
RESET DIVIDEND RATE ON ITS SERIES E AND SERIES M 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, J AND N PREFERRED SHARES

 

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 E (the “Series E Shares”) (TSX: FFH.PR.E) for the five years commencing April 1, 2020 and ending March 31, 2025. The fixed quarterly dividends on the Series E Shares during that period, if and when declared, will be paid at an annual rate of 3.183% (C$0.198938 per share per quarter).

 

Holders of Series E Shares have the right, at their option, exercisable not later than 5:00 p.m. (Toronto time) on March 16, 2020, to convert all or part of their Series E Shares, on a one-for-one basis, into Cumulative Floating Rate Preferred Shares, Series F (the “Series F Shares”) (TSX: FFH.PR.F), effective March 31, 2020. The quarterly floating rate dividends on the Series F Shares will be paid at an annual rate, calculated for each quarter, of 2.16% over the annual yield on three-month Government of Canada treasury bills. The actual quarterly dividend rate in respect of the March 31, 2020 to June 29, 2020 dividend period for the Series F Shares will be 0.94690% (3.79801% on an annualized basis) and the dividend for such dividend period, if and when declared, will be C$0.23673 per share, payable on June 29, 2020.

 

Holders of Series F Shares also have the right, at their option, exercisable not later than 5:00 p.m. (Toronto time) on March 16, 2020, to convert all or part of their Series F Shares, on a one-for-one basis, into Series E Shares, effective March 31, 2020. Holders of the Series F Shares who elect to convert their shares by the conversion deadline will receive Series E Shares effective March 31, 2020 and will be entitled to receive, if and when declared, the fixed-rate dividend as described above.

 

Holders of Series E Shares are not required to elect to convert all or any part of their Series E Shares into Series F Shares and holders of Series F Shares are not required to elect to convert all or any part of their Series F Shares into Series E Shares. Holders of the Series E Shares who do not elect to convert their shares by the conversion deadline will retain their Series E Shares and will receive the fixed-rate dividend as described above (subject to the automatic conversion features described below). Holders of the Series F Shares who do not elect to convert their shares by the conversion deadline will retain their Series F 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 E Shares and the Series F Shares: (i) if Fairfax determines that there would be fewer than 1,000,000 Series E Shares outstanding after March 31, 2020, all remaining Series E Shares will be automatically converted into Series F Shares on a one-for-one basis effective March 31, 2020 and Fairfax will cause the return of all Series F Shares tendered for conversion into Series E Shares; and (ii) if Fairfax determines that there would be fewer than 1,000,000 Series F Shares outstanding after March 31, 2020, all remaining Series F Shares will be automatically converted into Series E Shares on a one-for-one basis effective March 31, 2020 and Fairfax will cause the return of all Series E Shares tendered for conversion into Series F Shares.

 

FAIRFAX FINANCIAL HOLDINGS LIMITED

95 Wellington Street West, Suite 800, Toronto, Ontario, M5J 2N7 Telephone: 416-367-4941 Facsimile: 416-367-4946

 

 

There are currently 3,967,134 Series E Shares and 3,572,044 Series F Shares outstanding. The Series E Shares and the Series F Shares are listed on the Toronto Stock Exchange under the trading symbols “FFH.PR.E” and “FFH.PR.F”, respectively.

 

Fairfax also announces that it has determined the fixed dividend rate on its Cumulative 5-Year Rate Reset Preferred Shares, Series M (“Series M Shares”) (TSX: FFH.PR.M) for the five years commencing April 1, 2020 and ending March 31, 2025. The fixed quarterly dividends on the Series M Shares during that period, if and when declared, will be paid at an annual rate of 5.003% (C$0.312688 per share per quarter).

 

Holders of Series M Shares have the right, at their option, exercisable not later than 5:00 p.m. (Toronto time) on March 16, 2020, to convert all or part of their Series M Shares, on a one-for-one basis, into Cumulative Floating Rate Preferred Shares, Series N (the “Series N Shares”), effective March 31, 2020. The quarterly floating rate dividends on the Series N Shares will be paid at an annual rate, calculated for each quarter, of 3.98% over the annual yield on three-month Government of Canada treasury bills. The actual quarterly dividend rate in respect of the April 1, 2020 to June 29, 2020 dividend period for the Series N Shares will be 1.38526% (5.61801% on an annualized basis) and the dividend for such dividend period, if and when declared, will be C$0.34632 per share, payable on June 29, 2020.

 

Holders of Series M Shares are not required to elect to convert all or any part of their Series M Shares into Series N Shares.

 

As provided in the share conditions of the Series M Shares: (i) if Fairfax determines that there would be fewer than 1,000,000 Series M Shares outstanding after March 31, 2020, all remaining Series M Shares will be automatically converted into Series N Shares on a one-for-one basis effective March 31, 2020; and (ii) if Fairfax determines that there would be fewer than 1,000,000 Series N Shares outstanding after March 31, 2020, no Series M Shares will be permitted to be converted into Series N Shares and Fairfax will cause the return of all Series M Shares tendered for conversion into Series N Shares. There are currently 9,200,000 Series M Shares outstanding.

 

The Toronto Stock Exchange (“TSX”) has conditionally approved the listing of the Series N Shares effective upon conversion. Listing of the Series N Shares is subject to Fairfax fulfilling all the listing requirements of the TSX and, upon approval, the Series N Shares will be listed on the TSX under the trading symbol “FFH.PR.N”.

 

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, 2020

 

March 13, 2020

Series D

 

0.29930

 

March 30, 2020

 

 

Series E

 

0.18188

 

March 31, 2020

 

 

Series F

 

0.23760

 

March 30, 2020

 

 

Series G

 

0.207375

 

March 31, 2020

 

 

Series H

 

0.26253

 

March 30, 2020

 

 

Series I

 

0.23175

 

March 31, 2020

 

 

Series J

 

0.28060

 

March 30, 2020

 

 

Series K

 

0.291938

 

March 31, 2020

 

 

Series M

 

0.296875

 

March 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 March 31, 2020 to June 29, 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

 

1.19372

 

4.78801

 

0.29843

 

Series H

 

1.04663

 

4.19801

 

0.26166

 

Series J

 

1.11893

 

4.48801

 

0.27973

 

 

Fairfax is a holding company which, through its subsidiaries, is engaged in property and casualty insurance and reinsurance and the associated investment management.

 

-30-

 

For further information contact:                      John Varnell, Vice President, Corporate Development

at (416) 367-4941