FirstService Increases Credit Facility to US$450 Million
April 11 2019 - 4:30PM
FirstService Corporation (TSX: FSV; NASDAQ: FSV)
("
FirstService") announced today that it has
expanded its revolving credit facility (the
“
Facility”) by US$100 million, to a total
borrowing capacity of US$450 million. The amended Facility
supersedes the prior Facility, effected in January 2018 and which
had a borrowing capacity which totaled US$350 million (comprised of
an original US$250 million plus a US$100 million accordion feature
which was recently exercised in full). The maturity date of the
Facility remains January 2023. The Facility will continue to be
utilized for working capital and general corporate purposes and to
fund our tuck-under acquisition program.
The increased commitments under the Facility
were substantially oversubscribed by a syndicate of 10 banks, led
by The Toronto-Dominion Bank and including JP Morgan Chase Bank,
Bank of Montreal, Canadian Imperial Bank of Commerce, HSBC Bank,
The Bank of Nova Scotia, U.S. Bank, Bank of America, National Bank
of Canada and MUFG Union Bank.
“We appreciate the continued support and
confidence of our bank group in completing this transaction,” said
Jeremy Rakusin, Chief Financial Officer. “The increased Facility
maintains our flexibility and capacity to fund FirstService’s
operations and growth. Our investment-grade balance sheet remains
very strong and well-balanced with the Facility and our existing
US$150 million of privately-held long-term senior notes,” he
concluded.
“This additional financing enables us to
seamlessly continue to fund our tuck-under acquisition program,”
said D. Scott Patterson, Chief Executive Officer. “The transaction
is also another endorsement of FirstService’s long-standing track
record of strong financial performance.”
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 $1.9 billion in
annual revenues and has more than 20,000 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, 2018 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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