Firm Capital MIC announces $26.5M debenture offering

pcNewsWireFirm Capital Mortgage Investment Corporation (TSX: FC) has engaged TD Securities Inc. and CIBC Capital Markets for a bought deal of $26,500,000 aggregate principal amount of 5.30% convertible unsecured subordinated debentures due August 31, 2024.

Proceeds will be used to repay bank debt, fund new investments and for general corporate purposes.

News Release

FIRM CAPITAL MORTGAGE INVESTMENT CORPORATION ANNOUNCES $26.5 MILLION BOUGHT DEAL FINANCING

/NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES/

June 7, 2017, TORONTO – Firm Capital Mortgage Investment Corporation (the “Corporation”) (TSX:FC) is pleased to announce that it has entered into an agreement to sell, on a bought deal basis, to a syndicate of underwriters bookrun by TD Securities Inc. and CIBC Capital Markets, $26,500,000 aggregate principal amount of 5.30% convertible unsecured subordinated debentures due August 31, 2024 (the “Debentures”) at a price of $1,000 per Debenture. The Corporation has granted the underwriters an over-allotment option to purchase up to $3,975,000 additional aggregate principal amount of Debentures, exercisable, in whole or in part, at any time until 30 days following the closing of the offering. If the over-allotment option is exercised in full, the gross proceeds of the offering will be $30,475,000.

The net proceeds of the offering will be used to repay bank debt, fund new investments and for general corporate purposes.

The Debentures will bear interest at a rate of 5.30% per annum, payable semi-annually in arrears on the last day of February and August in each year commencing on August 31, 2017, and will mature on August 31, 2024 (the “Maturity Date”). The Debentures will be convertible at the holder’s option into common shares of the Corporation (the “Shares”) at any time prior to the earlier of the Maturity Date and the date fixed for redemption at a conversion price of $15.25 per Share (the “Conversion Price”), subject to adjustment in certain circumstances.
The offering is scheduled to close on or about June 27, 2017, and is subject to regulatory approval.

The securities being offered have not been and will not be registered under the United States Securities Act of 1933 and accordingly will not be offered, sold or delivered, directly or indirectly within the United States, its possessions and other areas subject to its jurisdiction or to, or for the account or for the benefit of a U.S. person, except in limited circumstances.

About The Corporation
Where Mortgage Deals Get Done®

The Corporation, through its mortgage banker, Firm Capital Corporation, is a non-bank lender providing residential and commercial short-term bridge and conventional real estate financing, including construction, mezzanine and equity investments. The Corporation’s investment objective is the preservation of Shareholders’ equity, while providing Shareholders with a stable stream of monthly dividends from investments. The Corporation achieves its investment objectives through investments in selected niche markets that are underserviced by large lending institutions. Lending activities to date continue to develop a diversified mortgage portfolio, producing a stable return to Shareholders. Full reports of the financial results of the Corporation for the three month period ended March 31, 2017 are outlined in the unaudited financial statements and the related management’s discussion and analysis of Firm Capital, available on the SEDAR website at www.sedar.com. In addition, supplemental information is available on Firm Capital’s website at www.firmcapital.com.

For further information, please contact:

Firm Capital Mortgage Investment Corporation
Eli Dadouch
President & Chief Executive Officer
(416) 635-0221