By Rebecca Melvin
New York, Oct. 21 - FirstService Corp. priced $70 million of convertible unsecured subordinated debentures on a bought-deal basis to yield 6.5%, with an initial conversion of 41%, according to a release.
There is an over-allotment option to purchase up to an additional $7 million of debentures.
The issue was made via a syndicate of underwriters co-led by TD Securities Inc. and Scotia Capital Inc., and including BMO Capital Markets, CIBC, HSBC Securities (Canada) Inc., RBC Capital Markets, Raymond James Ltd. and PI Financial Corp.
Proceeds are expected to be used for general corporate purposes and to repay existing indebtedness under its credit facility which will then be available to be drawn, as required, for working capital, acquisitions and general corporate purposes.
The debentures are non callable for three years, until Dec. 31, 2012; and then provisionally callable for the next year at a price hurdle of 125% of the volume weighted average trading price of FirstService shares on the Toronto Stock Exchange.
After Dec.31, 2013 and prior to the maturity date, FirstService may redeem the convertibles at par plus accrued and unpaid interest.
A preliminary short-form prospectus will be filed by Oct. 27.
FirstService is a Toronto-based provider of property services for commercial and residential real estate.
| Issuer: | FirstService Corp.
|
| Issue: | Convertible unsecured subordinated debentures
|
| Amount: | $70 million
|
| Greenshoe: | $7 million
|
| Maturity: | Dec. 31, 2014
|
| Coupon: | 6.5%
|
| Price: | Par of $1.000
|
| Yield: | 6.5%
|
| Conversion premium: | 41%
|
| Conversion price: | $28.00
|
| Conversion ratio: | 68.9655 shares
|
| Bookrunners: | TD Securities and Scotia Capital (joint leads)
|
| Pricing date: | Oct. 21
|
| Settlement: | Nov. 10
|
| Stock listing: | Nasdaq: FSRV
|
| Stock reference: | $19.88
|
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