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Fairfax Financial to Invest $150 Million in Mosaic Capital
Fairfax Financial to Invest $150 Million in Mosaic Capital Canada NewsWire CALGA...
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[{"type":"text","content":"\n\n\n\nFairfax Financial to Invest $150 Million in Mosaic Capital\n\n/* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n.prntac{\nTEXT-ALIGN: CENTER\n}\n\n\n\n\n\n\n\nCanada NewsWire\nCALGARY, Dec. 22, 2016\n\n\n\n/NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES./\n\n\n\nCALGARY, Dec. 22, 2016 /CNW/ - Mosaic Capital Corporation (\"Mosaic\") (TSX-V: M, M.PR.A and M.DB) is pleased to announce that Fairfax Financial Holdings Limited through certain of its subsidiaries (collectively \"Fairfax\") (TSX: FFH and FFH.U), has agreed to invest $150 million in Mosaic on a private placement basis (the \"Fairfax Financing\").\n\nFairfax has agreed to subscribe for $100 million principal amount of 6% senior preferred securities (the \"6% Senior Preferred Securities\"), $50 million principal amount of 5% seven-year term secured debentures (the \"5% Secured Debentures\") and common share purchase warrants entitling Fairfax to acquire up to 17,026,106 common shares of Mosaic at an exercise price of $8.81 per share for seven years.  If it fully exercises its warrants, Fairfax, through its subsidiaries, would own approximately 66% of Mosaic's common shares, based on the number of shares currently outstanding.\n\nMosaic and Fairfax each have long term, value oriented investing styles and have access to significant mid-market investment opportunities in Canada and, in the case of Fairfax, internationally. As part of the transaction, Mosaic and Fairfax have agreed to work together as preferred partners to share mid-market private equity opportunities. Mosaic believes this strategic relationship, combining lower cost of capital, greater access to deal flow and unique transactional opportunities, will accelerate its ability to make long term acquisitions and investments in Canada and internationally.\n\nFairfax will have the right to nominate two directors to the board of Mosaic. Paul Rivett, President of Fairfax, will be appointed as a director of Mosaic at closing of the Fairfax Financing which is expected to occur in late January 2017.\n\n\"We are excited to partner...