FirstService Increases Credit Facility to US$1.0 Billion
February 17 2022 - 4:15PM
FirstService Corporation (TSX: FSV; NASDAQ: FSV)
("
FirstService") announced today that it has
expanded and extended its revolving credit facility (the
“
Facility”), on an unsecured basis, for a new
five-year term maturing in February 2027. Under the amended
Facility, borrowing capacity has been increased to US$1.0 billion
and, at any time during the term, FirstService also has the right
to increase the Facility by up to US$250 million on the same terms
and conditions as the original Facility. The Facility will be used
to repay the remaining term loan balance of US$407 million under
the prior credit facility, and will also 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 ten banks, led by
The Toronto-Dominion Bank and including JP Morgan Chase Bank, Bank
of Montreal, Canadian Imperial Bank of Commerce, The Bank of Nova
Scotia, U.S. Bank, Bank of America, HSBC Bank, National Bank of
Canada and Raymond James Bank.
“We truly appreciate the long-standing
relationship with our bank group, who play a critical role in our
capital structure. This transaction enhances our financial
flexibility and capacity to fund our existing operations and future
growth,” said Jeremy Rakusin, Chief Financial Officer. “The
Facility, together with our remaining tranche of US$90 million of
privately-held long-term senior notes, provides us with a good
complement of attractively priced debt financing and maintains our
strong, investment-grade balance sheet,” he concluded.
“This financing will enable us to continue
pursuing growth initiatives across our businesses and driving
shareholder value. The confidence and support by our bank group is
a testament to FirstService’s proven business model and lengthy
track record of financial success,” 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 $3.2 billion in
annual revenues and has approximately 25,000 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
Common Shares of FirstService trade on the NASDAQ and the Toronto
Stock Exchange under the symbol "FSV", and are included in the
S&P/TSX 60 Index.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, 2020 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)
960-9566
Jeremy RakusinChief
Financial Officer(416) 960-9566
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