pcNewsWire – Firm Capital Mortgage Investment Corporation (TSX: FC) has closed its previously announced bought deal prospectus offering of $26,500,000 aggregate principal amount of 5.30% convertible unsecured subordinated debentures due August 31, 2024 at a price of $1,000 per debenture.
The offering was underwritten by a syndicate of underwriters that was co-led by TD Securities Inc. and CIBC Capital Markets, and which included Scotia Capital Inc., Canaccord Genuity Corp., National Bank Financial Inc., RBC Dominion Securities Inc., Desjardins Securities Inc., GMP Securities L.P., Industrial Alliance Securities Inc. and Echelon Wealth Partners Inc.
Proceeds are intended to be used to repay bank debt, fund new investments and for general corporate purposes.
News Release
FIRM CAPITAL MORTGAGE INVESTMENT CORPORATION CLOSES $26,500,000 BOUGHT DEAL FINANCING
/NOT FOR DISTRIBUTION OVER U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES/
June 27, 2017, TORONTO – Firm Capital Mortgage Investment Corporation (the “Corporation”) (TSX: FC) is pleased to announce that it has closed its previously announced bought deal prospectus offering (the “Offering”) of $26,500,000 aggregate principal amount of 5.30% convertible unsecured subordinated debentures of the Corporation (the “Debentures”) due August 31, 2024 at a price of $1,000 per Debenture. Each Debenture is convertible into common shares of the Corporation at the option of the holder at a conversion price of $15.25 per common share (or approximately 65.5738 common shares per $1,000 principal amount of Debentures). The Debentures are listed and posted for trading on the Toronto Stock Exchange under the symbol FC.DB.H.
The Offering was underwritten by a syndicate of underwriters that was co-led by TD Securities Inc. and CIBC Capital Markets, and which included Scotia Capital Inc., Canaccord Genuity Corp., National Bank Financial Inc., RBC Dominion Securities Inc., Desjardins Securities Inc., GMP Securities L.P., Industrial Alliance Securities Inc. and Echelon Wealth Partners Inc. (collectively, the “Underwriters”). The Corporation has also granted the Underwriters an over-allotment option, exercisable in whole or in part, at any time up to 30 days after the closing of the Offering to purchase up to an additional $3,975,000 aggregate principal amount of Debentures.
The net proceeds of the Offering are intended to be used to repay bank debt, fund new investments and for general corporate purposes.
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.
