Fairfax Financial Holdings Ltd.’s wholly owned subsidiary Crum & Forster Holdings Corp., the holding company for the Crum & Forster group insurance subsidiaries, has priced an offering of US$300 million of 10.375% senior notes due June 15, 2013 at an issue price of 96.985.

The notes are being sold on a private basis in the U.S. Net proceeds of the issue, after commissions and expenses of issue, will be about US$281 million, the Toronto-based company said.

The money (less the escrowed amounts of US$63.1 million) will be distributed to Fairfax for use in purchasing or repaying outstanding indebtedness or to invest in cash, short-term investments or marketable securities.

The proceeds of this offering and the previously announced initial public offering of Fairfax’s subsidiary Northbridge Financial Corp. will help Fairfax in meeting its target of ending the year with $500 million of cash, short-term investments and marketable securities at the holding company.