TORONTO, Nov. 25, 2019 /CNW/ - First National Financial
Corporation (TSX: FN, TSX:FN.PR.A, TSX:FN.PR.B) (the
"Company") today announced it has issued $200,000,000 of new senior unsecured notes.
Priced at par, the notes were issued pursuant to a private
placement under an offering memorandum for a five-year term
maturing on November 25, 2024. The
notes bear interest at 3.582% payable in equal semi-annual payments
commencing May 25, 2020. The net
proceeds will be invested in First National Financial LP ("LP"),
which in turn will repay a portion of the outstanding amount drawn
on its bank credit facility. The senior unsecured notes were
offered through a syndicate of dealers co-led by RBC Capital
Markets and TD Securities.
On April 9, 2020, the LP plans to
draw on the bank credit facility to repay the Company's maturing
4.01% $175,000,000 unsecured
notes.
"With 38 investors and a credit spread of 2.1% over the
benchmark bond, this is First National's most successful debt
offering to date," said Robert
Inglis, Chief Financial Officer. "We are very pleased
with market reception as it speaks to the confidence in the
Company's business model."
About First National Financial Corporation
First
National Financial Corporation (TSX:FN, TSX:FN.PR.A,
TSX:FN.PR.B) is the parent company of First National Financial
LP, a Canadian-based originator, underwriter and servicer of
predominantly prime residential (single-family and multi-unit) and
commercial mortgages. With over $110
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.
SOURCE First National Financial Corporation