By Marisa Wong
Madison, Wis., Jan. 17 - FirstService Corp. announced that it completed a private placement of $150 million of 3.84% senior secured notes.
The notes were purchased directly by Prudential Capital Group and New York Life Investment Management.
The 12-year notes have equal annual principal repayments scheduled beginning eight years after the issue date, for a 10-year average life.
According to a company press release, this financing follows the completion of a $350 million five-year revolving credit facility in March 2012. The facility also provides for an additional $100 million incremental revolving credit facility.
Proceeds from the private placement were used to repay amounts outstanding under the revolving credit facility, leaving over $250 million, or up to $350 million including the incremental facility, immediately available to fund future growth, the release said.
"Completion of this financing on very attractive terms provides us with a highly competitive cost of long-term debt capital, reflecting our financial strength, diversification and historical track record of success," senior vice president and chief financial officer John B. Friedrichsen said in the release.
"We are very pleased to have added long-term capital from two of America's most prominent institutional, private placement investors," Friedrichsen added.
"Securing $150 million of capital on terms superior to those obtained by many of our peers is indicative of our investment-grade quality and a significant vote of confidence in our company," said founder and chief executive officer Jay S. Hennick.
Based in Toronto, FirstService provides commercial real estate, residential property management and property services.
| Issuer: | FirstService Corp.
|
| Issue: | Senior secured notes
|
| Amount: | $150 million
|
| Maturity: | Jan. 16, 2025
|
| Coupon: | 3.84%
|
| Investors: | Prudential Capital Group and New York Life Investment Management
|
| Announcement date: | Jan. 17
|
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