FirstService Increases Credit Facility to US$250 Million
January 17 2018 - 4:30PM
FirstService Corporation (TSX:FSV) (NASDAQ:FSV)
("
FirstService") announced today that it has
expanded and extended its revolving credit facility (the
“
Facility”) to further reinforce its strong
financial position and increase its flexibility to fund future
growth. Under the amended Facility, borrowing capacity has been
increased to US$250 million, up from US$200 million, and the
maturity date has been extended to January 2023 from June 2020. At
any time during the term, FirstService has the right to increase
the Facility by up to US$100 million on the same terms and
conditions as the original Facility. The Facility will continue to
be utilized for working capital and general corporate purposes and
to fund future tuck-under acquisitions.
The increased five-year Facility was
substantially oversubscribed by its syndicate of 11 banks, led by
The Toronto-Dominion Bank and including JP Morgan Chase Bank, Bank
of Montreal, Canadian Imperial Bank of Commerce, HSBC Bank, Royal
Bank of Canada, The Bank of Nova Scotia, U.S. Bank, Bank of
America, National Bank of Canada and MUFG Union Bank.
“We are pleased to have completed this financing
early in the year to maintain flexibility for FirstService to fund
its ongoing operations and future growth,” said Jeremy Rakusin,
Chief Financial Officer. “We appreciate the continued support of
our bank group in completing this transaction. The Facility,
together with our existing $150 million of privately-held long-term
senior notes, ensures that our investment-grade balance sheet
remains very strong with a conservative capital structure comprised
of attractively priced debt financing,” he concluded.
“The completion of this financing is a further
endorsement of FirstService’s proven business model and lengthy
track record of success. With the increased financial capacity, we
are well-positioned to pursue future growth opportunities across
our businesses which ultimately will assist in delivering further
value to our shareholders,” said D. Scott Patterson, Chief
Executive Officer.
About FirstService CorporationFirstService
Corporation is a North American leader in the property
services sector, serving its customers through two industry-leading
service platforms: FirstService Residential,
North America's largest manager of residential communities;
and FirstService Brands, one of North
America's largest providers of essential property services
delivered through individually branded franchise systems and
company-owned operations.
FirstService generates more than $1.5 billion in
annual revenues and has more than 17,000 employees across North
America. With significant insider ownership and an experienced
management team, FirstService has a long-term track record of
creating value and superior returns for shareholders. The
Subordinate Voting Shares of FirstService trade on the NASDAQ and
the Toronto Stock Exchange under the symbol "FSV".
For the latest news from FirstService
Corporation, visit
www.firstservice.com
Forward-looking StatementsThis
press release includes or may include forward-looking statements.
Much of this information can be identified by words such as “expect
to,” “expected,” “will,” “estimated” or similar expressions
suggesting future outcomes or events. FirstService believes the
expectations reflected in such forward-looking statements are
reasonable but no assurance can be given that these expectations
will prove to be correct and such forward-looking statements should
not be unduly relied upon. These statements involve known and
unknown risks, uncertainties and other factors which may cause the
actual results to be materially different from any future results,
performance or achievements contemplated in the forward-looking
statements. Such factors include: (i) general economic and business
conditions, which will, among other things, impact demand for
FirstService’s services and the cost of providing services; (ii)
the ability of FirstService to implement its business strategy,
including FirstService’s ability to acquire suitable acquisition
candidates on acceptable terms and successfully integrate newly
acquired businesses with its existing businesses; (iii) changes in
or the failure to comply with government regulations; and (iv)
other factors which are described in FirstService’s annual
information form for the year ended December 31, 2016 under the
heading “Risk factors” (a copy of which may be obtained at
www.sedar.com) and Annual Report on Form 40-F filed with the United
States Securities and Exchange Commission (a copy of which may be
obtained at www.sec.gov), and subsequent filings (which factors are
adopted herein). Forward-looking statements contained in this press
release are made as of the date hereof and are subject to change.
All forward-looking statements in this press release are qualified
by these cautionary statements. Unless otherwise required by
applicable securities laws, we do not intend, nor do we undertake
any obligation, to update or revise any forward-looking statements
contained in this press release to reflect subsequent information,
events, results or circumstances or otherwise.
COMPANY CONTACTS:
D. Scott
PattersonPresident &
CEO (416)
960-9500
Jeremy RakusinChief
Financial Officer(416) 960-9500
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