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Helios Fairfax Partners (TSX:HFPC.U) closes portfolio insurance arrangement with Fairfax Financial (TSX:FFH)
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  • Helios Fairfax Partners (HFPC.U) has closed a portfolio insurance arrangement with Fairfax Financial (FFH)
  • Certain Fairfax affiliates subscribed for 3 per cent three-year unsecured debentures of HFP totaling US$100 million
  • Fairfax affiliates also subscribed for 3 million HFP warrants allowing for the purchase of HFP shares at US$4.90 each
  • As of the closing date, Fairfax owns a 36.2 per cent equity interest and a 53.4 per cent voting interest in HFP
  • Fairfax Financial is engaged in property and casualty insurance and reinsurance
  • Helios Fairfax Partners' objective is to achieve long-term capital appreciation by investing in African businesses
  • Fairfax Financial Holdings (FFH) is up 1.32 per cent and is currently trading at C$555.79 per share at 2:57 pm ET
  • Helios Fairfax Partners (HFPC.U) is down 7.02 per cent and is currently trading at US$4.24 per share at 11:29 am ET

Helios Fairfax Partners (HFPC.U) has closed a portfolio insurance arrangement with Fairfax Financial (FFH).

Certain Fairfax affiliates subscribed for 3 per cent unsecured debentures of HFP on a private placement basis for a total of US$100 million.

The debentures mature three years from March 31, 2021, or, at the option of Fairfax, on either of the first two anniversary dates of the closing date.

The debentures' redemption price is equal to the principal amount, plus any accrued and unpaid interest, less the amount, if any, by which the fair value of HFP’s investments in AGH, Philafrica and PGR2 Loan is lower than US$102.6 million.

In addition, certain Fairfax affiliates subscribed for 3 million HFP warrants allowing Fairfax to purchase HFP shares at US$4.90 per share.

The warrants are exercisable at any time prior to the fifth anniversary of the closing date.

If all of the warrants are exercised, the aggregate shares issued would represent approximately 2.7 per cent of all HFP's outstanding shares.

As of the closing date, Fairfax owns a 36.2 per cent equity interest and a 53.4 per cent voting interest in HFP.

Fairfax acquired the debentures and warrants for investment purposes.

Fairfax Financial is a holding company engaged in property and casualty insurance and reinsurance and the associated investment management.

Helios Fairfax Partners is an investment holding company whose objective is to achieve long-term capital appreciation by investing in African businesses.

Fairfax Financial Holdings (FFH) is up 1.32 per cent and is currently trading at C$555.79 per share as of 2:57 pm ET.

Helios Fairfax Partners (HFPC.U) is down 7.02 per cent and is currently trading at US$4.24 per share as of 11:29 am ET.

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