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Fairfax Financial Holdings Limited Cumulative 5-Year Rate Reset Preferred Shares Series K (FFH.PR.K)
Q: Ffh.pr.k jumped by roughly 5% today and I am baffled as to what would prompt this kind of move up in its sp. Can you shed any light? Very unusual for a pref.
5i Research Answer:
**edited for addition**
After our original answer Bloomberg noted that an FFH indicated an additional FFH bond sale may go towards the redemption of some preferred shares of FFH. This is more likely a factor in the gains.
There are rumours FFH is likely selling $500M in new bonds (not officially confirmed) to help facility the leveraged buyout of Sleep Country Canada. While bonds rank higher than preferred shares, any new capital gives FFH more financial flexibility and thus preferred buyers may have been encouraged.