TORONTO, Aug. 29, 2023 /CNW/ - First National
Financial Corporation (TSX: FN) (TSX: FN.PR.A), (TSX: FN.PR.B)
("First National") today announced its intention to issue
$200,000,000 of new senior unsecured
notes.
The notes will be issued at a price of $999.99 per $1,000
principal amount pursuant to a private placement under an offering
memorandum for a three-year term maturing on September 8, 2026. The notes will bear interest
at 7.293% payable in semi-annual payments commencing March 8, 2024. First National intends to use the
net proceeds of the offering to make a loan to First National
Financial LP (the "Partnership"), which will allow the Partnership
to repay indebtedness under its bank credit facility and use for
general partnership purposes. The offering is expected to close on
September 6, 2023. The senior
unsecured notes were offered through a syndicate of dealers co-led
by RBC Capital Markets and TD Securities, supported by BMO Nesbitt
Burns, CIBC World Markets, National Bank Financial, Scotia Capital,
Desjardins Securities and Laurentian Bank Securities.
"This transaction is a testament to the market's confidence in
First National," said Robert Inglis,
Chief Financial Officer. "We are very pleased with the market
reception in these relatively turbulent times."
About First National Financial Corporation
First National Financial Corporation (TSX:FN, TSX:FN.PR.A,
TSX:FN.PR.B) is the parent company of the Partnership, a
Canadian-based originator, underwriter and servicer of
predominantly prime residential (single-family and multi-unit) and
commercial mortgages. With over $137
billion in mortgages under administration, First National is
one of Canada's largest non-bank
mortgage originators and underwriters and is among the top three in
market share in the mortgage broker distribution channel. For more
information, please visit www.firstnational.ca.
Forward-Looking Information
Certain information included in this news release may constitute
forward-looking information within the meaning of securities laws,
including the expected closing date and the intended use of
proceeds of the offering. Forward-looking information is based on
certain factors and assumptions including future debt requirements.
Forward-looking information should not be read as providing
guarantees of future performance or results, and will not
necessarily be an accurate indication of whether or not, or the
times by which, those results will be achieved. While management
considers these assumptions to be reasonable based on information
currently available, they may prove to be incorrect. Forward
looking-information is subject to certain factors, including risks
and uncertainties listed under "Risk and Uncertainties Affecting
the Business" in the management's discussion and analysis
("MD&A") of financial condition and results of operations of
First National prepared as of August 1,
2023 filed at www.sedarplus.ca that could cause actual
results to differ materially from what management currently
expects. This forward-looking information is as of the date of this
release, and is subject to change after such date. However,
management and First National disclaim any intention or obligation
to update or revise any forward-looking information, whether as a
result of new information, future events or otherwise, except as
required under applicable securities regulations.
SOURCE First National Financial Corporation