Fairfax Raising $250M

[Parsad]

Re-opening of the 2022 debt offering.  Cheers!

 

http://finance.yahoo.com/news/fairfax-launches-250-million-opening-195600081.html

[StubbleJumper]

So, in other words, pay out $200m in divvies at the end of January, and then borrow $250m more?  I don't get it...

[ourkid8]

Last time they paid a dividend and then issued shares to purchase I believe it was Zenith.  That stung as they could have paid the minimum $2 dividend and used the money saved for the acquisition.  What I learned is that this dividend is a priority for Fairfax and we have to learn to live with it.

 

S

 

So, in other words, pay out $200m in divvies at the end of January, and then borrow $250m more?  I don't get it...

[rranjan]

What I learned is that this dividend is a priority for Fairfax and we have to learn to live with it.

 

S

 

 

My understanding -- Dividend is meant to supplement modest salary of management. It helps them to avoid selling their stake in FFH.