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Fairfax (FRFFF) backs US$1.3B loan in Kennedy Wilson buyout

Filing Impact
(Neutral)
Filing Sentiment
(Neutral)
Form Type
6-K

Rhea-AI Filing Summary

Fairfax Financial Holdings Limited has completed the previously announced take-private acquisition of Kennedy-Wilson Holdings, Inc. by a consortium that includes Fairfax, for US$10.90 per share in cash under a Merger Agreement. The consortium is led by Kennedy Wilson Chairman and CEO William McMorrow and other senior executives, who retain effective and operational control and continue to lead Kennedy Wilson and its subsidiaries, while Fairfax holds a majority of the economic interest.

An affiliate of the consortium entered into a Term Loan Credit Agreement for a three-year US$1.3 billion term loan facility. In connection with this facility, Fairfax agreed to provide a stand-by guarantee in favour of the lenders, guaranteeing the borrower’s obligations under the Credit Agreement upon the occurrence of certain events. Fairfax remains primarily focused, through its subsidiaries, on property and casualty insurance, reinsurance and related investment management.

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Insights

Fairfax gains majority economics in Kennedy Wilson and backs a US$1.3B loan facility with a stand-by guarantee.

The completed take-private gives Fairfax a majority economic interest in Kennedy Wilson, while the existing management team, led by William McMorrow, keeps operational control. This structure combines Fairfax’s capital with continuity in Kennedy Wilson’s leadership and strategy.

An affiliate of the consortium obtained a three-year US$1.3 billion term loan facility under a Term Loan Credit Agreement. Fairfax’s stand-by guarantee means it has committed to guarantee the borrower’s obligations to lenders if certain events under the agreement occur, increasing its exposure to Kennedy Wilson’s performance and the loan’s credit profile.

The filing also reiterates broad risk factors affecting Fairfax, including insurance underwriting risk, market volatility, regulatory changes and acquisition execution risk. Investors can later use future company disclosures to see how Kennedy Wilson’s integration and the guaranteed loan influence Fairfax’s earnings, leverage and capital allocation over the term of the facility.

Acquisition price per share US$10.90 per share Cash consideration for each Kennedy Wilson share in the take-private
Term loan facility US$1.3 billion Principal amount of term loan under the Term Loan Credit Agreement
Loan term Three years Tenor of the US$1.3 billion term loan facility
take-private transaction financial
"Fairfax Announces Completion of Kennedy Wilson Take-Private Transaction"
A take-private transaction is when one party buys enough shares of a publicly traded company to remove it from the stock market and make it privately owned. For investors this matters because buyers typically offer a cash premium to persuade shareholders to sell, after which shares stop trading publicly and liquidity and public oversight decrease — similar to buying out co-owners of a shared property so it becomes a single-owner house.
Term Loan Credit Agreement financial
"entered into a Term Loan Credit Agreement (the “Credit Agreement”)"
A term loan credit agreement is a formal contract where a borrower receives a fixed sum of money from a lender and agrees to repay it over a set period with interest, much like a multi‑year mortgage or car loan for a business. It matters to investors because the size, cost and rules of the loan affect a company’s cash flow, risk of default and ability to invest or pay dividends; restrictive conditions can also force operational changes.
stand-by guarantee financial
"Fairfax agreed to provide a stand-by guarantee pursuant to which Fairfax would agree"
consortium financial
"by an entity affiliated with a consortium (the “Consortium”) led by William McMorrow"
A consortium is a temporary partnership where two or more companies, investors, or institutions pool money, skills, or assets to pursue a specific project, bid, or investment. For investors, a consortium matters because it spreads financial risk, combines expertise that can improve the chances of success, and can change who controls or benefits from a deal—similar to several people pooling cash to buy a property they couldn’t afford alone.
forward-looking statements regulatory
"Certain statements contained herein may constitute “forward-looking statements”"
Forward-looking statements are predictions or plans that companies share about what they expect to happen in the future, like estimating sales or profits. They matter because they help investors understand a company's outlook, but since they are based on guesses and assumptions, they can sometimes be wrong.
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FAQ

What transaction did Fairfax Financial (FRFFF) complete involving Kennedy Wilson?

Fairfax completed the previously announced take-private acquisition of Kennedy-Wilson Holdings, Inc. A consortium including Fairfax acquired Kennedy Wilson for US$10.90 per share in cash under a Merger Agreement, taking the real estate company private and giving Fairfax a majority economic interest.

Who controls Kennedy Wilson after the Fairfax-led take-private transaction?

After the transaction, the KW Management Group, led by Chairman and CEO William McMorrow, retains effective and operational control of Kennedy Wilson. They continue to lead and hold ultimate responsibility for Kennedy Wilson and its subsidiaries, while Fairfax primarily holds a majority economic stake rather than day-to-day control.

What loan facility is associated with Fairfax’s Kennedy Wilson transaction?

An affiliate of the consortium entered a Term Loan Credit Agreement for a three-year US$1.3 billion term loan facility. This loan supports the transaction structure and is obtained by a borrower affiliated with the consortium rather than directly by Fairfax itself, according to the disclosure.

What stand-by guarantee did Fairfax (FRFFF) provide in connection with the credit agreement?

Fairfax agreed to provide a stand-by guarantee in favour of the lenders under the Term Loan Credit Agreement. If certain events specified in the agreement occur, Fairfax would guarantee the borrower’s obligations on the US$1.3 billion term loan facility, increasing its contingent financial exposure.

What are the main business activities of Fairfax Financial Holdings (FRFFF)?

Fairfax Financial Holdings Limited is a holding company focused on property and casualty insurance and reinsurance. Through its subsidiaries, it also engages in associated investment management activities, with its head and registered office located on Wellington Street West in Toronto, Ontario, Canada.

What key risks does Fairfax highlight alongside the Kennedy Wilson deal?

Fairfax cites broad risks such as acquisition execution, inadequate loss reserves, catastrophic insurance events, market volatility, credit risk with reinsurers and insureds, regulatory changes, tax law developments, technology disruptions and geopolitical events. These risks may affect Fairfax’s actual results versus forward-looking statements.

 

 

 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

 

Form 6-K

 

Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934

 

For the month of: June 2026   Commission File Number: 001-31556

 

FAIRFAX FINANCIAL HOLDINGS LIMITED
(Name of Registrant)

 

95 Wellington Street West
Suite 800

Toronto, Ontario
Canada M5J 2N7
(Address of Principal Executive Offices)

 

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:

 

Form 20-F ¨   Form 40-F x

 

 

 

 

 

 

EXHIBIT INDEX 

 

Exhibit   Description of Exhibit
99.1   News Release dated June 16, 2026 titled Fairfax Announces Completion of Kennedy Wilson Take-Private Transaction

 

 

- 3 -

 

SIGNATURES 

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

  FAIRFAX FINANCIAL HOLDINGS LIMITED
     
Date: June 16, 2026   By: /s/ Derek Bulas
    Name: Derek Bulas
    Title: Vice President, Chief Legal Officer and Corporate Secretary

 

 

 

Exhibit 99.1

 

FAIRFAX News Release

TSX Stock Symbol: FFH and FFH.U

 

TORONTO, June 16, 2026

 

FAIRFAX ANNOUNCES COMPLETION OF KENNEDY WILSON TAKE-PRIVATE TRANSACTION

 

Fairfax Financial Holdings Limited (TSX: FFH and FFH.U) (“Fairfax”) announced today that the previously announced acquisition of Kennedy-Wilson Holdings, Inc. (“Kennedy Wilson”) by an entity affiliated with a consortium (the “Consortium”) led by William McMorrow, Chairman and Chief Executive Officer of Kennedy Wilson, certain other senior executives of the Company (collectively, the “KW Management Group”), and certain affiliates of Fairfax for US$10.90 per share in cash pursuant to a Merger Agreement has been completed. The KW Management Group, led by William McMorrow, has effective and operational control of and continues to lead and have ultimate responsibility for Kennedy Wilson and its subsidiaries while Fairfax holds a majority of the economic interest.

 

In addition, an affiliate of the Consortium (the “Borrower”) entered into a Term Loan Credit Agreement (the “Credit Agreement”) pursuant to which it obtained a three-year US$1.3 billion term loan facility. In connection with the Credit Agreement, Fairfax agreed to provide a stand-by guarantee pursuant to which Fairfax would agree, upon the occurrence of certain events under the Credit Agreement, to guarantee in favour of the lenders the obligations of the Borrower under the Credit Agreement.

 

About Fairfax

 

Fairfax Financial Holdings Limited is a holding company which, through its subsidiaries, is primarily engaged in property and casualty insurance and reinsurance and the associated investment management.

 

Fairfax Financial Holdings Limited’s head and registered office is located at 95 Wellington Street West, Suite 800, Toronto, Ontario, M5J 2N7.

 

For further information, contact:    John Varnell, Vice President, Corporate Development at (416) 367-4941

 

 

 

 

Certain statements contained herein may constitute “forward-looking statements” and are made pursuant to the “safe harbour” provisions of applicable Canadian and U.S. securities laws. Such forward-looking statements are subject to known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Fairfax to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, but are not limited to: our ability to complete acquisitions and other strategic transactions on the terms and timeframes contemplated, and to achieve the anticipated benefits therefrom; a reduction in net earnings if our loss reserves are insufficient; underwriting losses on the risks we insure that are higher than expected; the occurrence of catastrophic events with a frequency or severity exceeding our estimates; changes in market variables, including unfavourable changes in interest rates, foreign exchange rates, equity prices and credit spreads, which could negatively affect our operating results and investment portfolio; the cycles of the insurance market and general economic conditions, which can substantially influence our and our competitors’ premium rates and capacity to write new business; insufficient reserves for asbestos, environmental and other latent claims; exposure to credit risk in the event our reinsurers fail to make payments to us under our reinsurance arrangements; exposure to credit risk in the event our insureds, insurance producers or reinsurance intermediaries fail to remit premiums that are owed to us or failure by our insureds to reimburse us for deductibles that are paid by us on their behalf; our inability to maintain our long term debt ratings, the inability of our subsidiaries to maintain financial or claims paying ability ratings and the impact of a downgrade of such ratings on derivative transactions that we or our subsidiaries have entered into; risks associated with implementing our business strategies; the timing of claims payments being sooner or the receipt of reinsurance recoverables being later than anticipated by us; risks associated with any use we may make of derivative instruments; the failure of any hedging methods we may employ to achieve their desired risk management objective; a decrease in the level of demand for insurance or reinsurance products, or increased competition in the insurance industry; the impact of emerging claim and coverage issues or the failure of any of the loss limitation methods we employ; our inability to access cash of our subsidiaries; an increase in the amount of capital that we and our subsidiaries are required to maintain and our inability to obtain required levels of capital on favourable terms, if at all; the loss of key employees; our inability to obtain reinsurance coverage in sufficient amounts, at reasonable prices or on terms that adequately protect us; the passage of legislation subjecting our businesses to additional adverse requirements, supervision or regulation, including additional tax regulation, in the United States, Bermuda, Canada or other jurisdictions in which we operate; risks associated with applicable laws and regulations relating to sanctions, anti-money laundering and corrupt practices in Canada and in foreign jurisdictions in which we operate; risks associated with government investigations of, and litigation and negative publicity related to, insurance industry practice or any other conduct; risks associated with political and other developments in foreign jurisdictions in which we operate; risks associated with legal or regulatory proceedings or significant litigation; failures or security breaches of our computer and data processing systems; the influence exercisable by our significant shareholder; adverse fluctuations in foreign currency exchange rates; our dependence on independent brokers over whom we exercise little control; financial reporting risks relating to deferred taxes associated with amendments to IAS 12 – Income Taxes; impairment of the carrying value of our goodwill, indefinite-lived intangible assets or investments in associates; our failure to realize deferred income tax assets; risks associated with Canadian or foreign tax laws, or the interpretation thereof; technological or other change that adversely impacts demand, or the premiums payable, for the insurance coverages we offer; disruptions of our information technology systems; assessments and shared market mechanisms that may adversely affect our insurance subsidiaries; risks associated with economic disruptions from global conflicts and the development of other geopolitical events worldwide; and risks associated with tariffs, trade restrictions, or other regulatory measures imposed by domestic or foreign governments that may, directly or indirectly, affect our business. Additional risks and uncertainties are described in our most recently issued Annual Report which is available at www.fairfax.ca and on SEDAR+ at www.sedarplus.ca and on EDGAR at www.sec.gov, and in our base shelf prospectus (under “Risk Factors”) filed with the securities regulatory authorities in Canada, which is available on SEDAR+ at www.sedarplus.ca. Fairfax disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable securities law.

 

 

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