TORONTO, Nov. 6, 2020 /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.
Priced at par, the notes will be issued pursuant to a private
placement under an offering memorandum for a five-year term
maturing on November 17, 2025. The
notes will bear interest at 2.961% payable in semi-annual payments
commencing May 17, 2021. 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 November
16, 2020. 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 and Laurentian Bank
Securities.
"With 42 investors and a credit spread of 2.55% over the
benchmark bond, this is a testament to the market's confidence in
First National," said Robert Inglis,
Chief Financial Officer. "We are very pleased with 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 $117 billion in
mortgages under administration, First National is Canada's largest non-bank originator and
underwriter of mortgages 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 October 27, 2020 filed at
www.sedar.com 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