By Marisa Wong
Madison, Wis., Jan. 18 - FirstService Corp. released more details on its recent private placement of senior secured notes in an 8-K filed Friday with the Securities and Exchange Commission.
FirstService completed the placement of $150 million 3.84% senior secured notes on Wednesday. The notes were purchased directly by Prudential Capital Group and New York Life Investment Management.
As previously reported, 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 the filing, the notes have a make-whole call option at Treasuries plus 50 basis points. The company may call the notes at any time, in whole or in part, subject to a minimum redemption amount of $5 million.
According to a company press release on Thursday, 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 more than $250 million, or up to $350 million including the incremental facility, immediately available to fund future growth, the release said.
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%
|
| Call option: | Make-whole at Treasuries plus 50 bps
|
| Investors: | Prudential Capital Group and New York Life Investment Management
|
| Settlement date: | Jan. 16
|
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