On July 10, 2003, Standard&Poor's Ratings Services assigned its 'BB' rating to Fairfax Financial Holdings Ltd.'s $150 million, 5% convertible senior unsecured debt offering, which is due July 15, 2023. This offering, which ranks equally in right of payment with all of Fairfax's existing and future unsecured senior debt obligations, can only be sold to qualified institutional buyers in the U.S. based on Rule 144A of the U.S. Securities Act of 1933. Under certain circumstances, each $1,000 of principal is convertible into 4.7057 Fairfax subordinate voting shares. This corresponds to an initial conversion price of about $212.51 per share, a premium of about 42.8% over the closing price of the subordinate voting shares on July 8, 2003. Before
