Fairfax Announces Tender Offer For Debt Securities

November 19, 2004

Toronto-based Fairfax Financial Holdings Limited announced that it has commenced a tender offer for certain of the outstanding debt securities, or notes, of Fairfax and its wholly-owned subsidiary, TIG Holdings, Inc. for up to U.S. $150 million in cash.

Fairfax said that “in order to receive the applicable total consideration, including the early tender payment, holders must validly tender and not withdraw their Notes by 5:00 p.m., New York City time, on Thursday, December 2, 2004. Holders who tender Notes after the Early Tender Date will not receive the early tender payment.

“The total consideration for each series of Notes will be based on a specified fixed spread for that series over the yield of the reference U.S. Treasury security for that series (or, in the case of the 8.597 percent Capital Securities, a fixed price).”

The company also noted that, “the complete terms and conditions of the Offer are set forth in the Offer to Purchase dated November 18, 2004, which is being sent to holders of Notes,” and cautioned the recipients “to read the tender offer documents carefully.”

It also indicated that the “Offer is subject to the satisfaction or waiver of certain conditions, including the closing of Fairfax’s previously-announced issuance of U.S. $300 million of subordinate voting shares to certain institutional investors. The Offer is not conditioned on any minimum amount of Notes being tendered.”

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