FirstService greenshoe exercised, lifts convertibles to $77 million

By Devika Patel

Knoxville, Tenn., Dec. 9 - FirstService Corp. said the underwriters for its offering of 6.5% five-year convertible unsecured subordinated debentures exercised their over-allotment option in full for $7 million more of the convertibles, increasing the size of the issue to $77 million

As previously reported, the company sold the debentures at par 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. The issue priced Oct. 21.

The debentures have a conversion premium of 41% and a conversion price of $28.00, which equals a conversion ratio of 68.9655.

The debentures are non-callable 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 interest.

FirstService, a Toronto-based provider of property services for commercial and residential real estate, will use the proceeds for general corporate purposes and to repay existing debt under its credit facility, which will then be available to be drawn, as required, for working capital, acquisitions and general corporate purposes.

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