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FirstService lifts note capacity with Prudential, New York Life to $450 million
By Wendy Van Sickle
Columbus, Ohio, Sept. 29 – FirstService Corp. entered into two new revolving, uncommitted financing facilities for potential future private placement issuances of up to $450 million of senior notes with its existing lenders, according to a news release.
Specifically, the company may issue up to $150 million notes to NYL Investors LLC (New York Life) and up to $300 million of notes to PGIM Private Capital (Prudential), in each case, net of any existing notes held by them.
The facilities each have a three-year term ending Sept. 29, 2025. FirstService has the ability to issue incremental note tranches under the facilities, subject to acceptance by New York Life or Prudential, with varying maturities and with coupon pricing determined at the time of issuance.
As part of the closing of the New York Life facility, FirstService privately placed $60 million of 4.53% notes due Sept. 29, 2032 with New York Life.
Together with the previously outstanding $90 million of 3.84% notes due Jan. 16, 2025, which are equally held by New York Life and Prudential, FirstService currently has $150 million of issued and outstanding notes, leaving $300 million of remaining capacity under the facilities at the present time.
The proceeds from any issued notes are intended to be used for working capital and general corporate purposes and to fund future tuck-under acquisitions, as well as potential repayment of amounts outstanding under FirstService’s revolving bank credit facility.
Covenants and restrictions under the facilities are substantively equivalent to those contained in FirstService’s revolving bank credit facility.
Based in Toronto, FirstService provides commercial real estate, residential property management and property services.
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