FirstService Corporation Completes US$150 Million Private Placement of Common Shares
May 22 2020 - 4:40PM
FirstService Corporation (TSX: FSV; NASDAQ: FSV) (“FirstService”)
is pleased to report that today it completed the sale, on a private
placement basis, of a total of 1,797,359 common shares (the “Common
Shares”) of FirstService, at a price of US$83.46 per share, to
Durable Capital Partners LP (“Durable Capital”), for proceeds of
approximately US$150 million (the “Private Placement”). In
connection with the Private Placement, FirstService granted
customary registration rights to Durable Capital for the future
resale of the Common Shares purchased in the Private Placement.
FirstService intends to use the proceeds of the
Private Placement to repay a portion of its existing indebtedness
under its revolving credit facility, to finance potential future
acquisitions, and to fund working capital and general corporate
purposes.
“We are pleased that Durable Capital understands
the opportunity we have in front of us and has further increased
its investment in FirstService,” said Scott Patterson, President
and Chief Executive Officer of FirstService. “This financing
provides us with greater financial flexibility to capitalize on
growth opportunities that may arise in the current environment,” he
concluded.
The Common Shares issued pursuant to the Private
Placement have not been and will not be registered under the U.S.
Securities Act of 1933, as amended (the “Securities Act”), or
qualified by a prospectus in Canada. The Common Shares may not be
offered or sold in the United States absent registration under the
Securities Act or an applicable exemption from registration under
the Securities Act, or sold in Canada absent an exemption from the
prospectus requirements of Canadian securities laws. This news
release shall not constitute an offer to sell or the solicitation
of an offer to buy the Common Shares, nor shall there be any sale
of the Common Shares in any jurisdiction in which such offer,
solicitation or sale would be unlawful.
About FirstService
Corporation
FirstService Corporation is a North American
leader in the essential outsourced 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 US$2.4 billion in annual
revenues and has approximately 24,000 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”. More information is available at
www.firstservice.com.
Forward-Looking Statements
This news release contains forward-looking
information and forward-looking statements within the meaning of
applicable Canadian and U.S. securities laws. Much of this
information can be identified by words such as “expect to,”
“expected,” “will,” “estimated” or similar expressions suggesting
future outcomes or events, and includes the expected use of the
proceeds of the Private Placement. FirstService believes the
expectations reflected in such forward-looking information and
statements are reasonable but no assurance can be given that these
expectations will prove to be correct and such forward-looking
information and statements should not be unduly relied upon.
Forward-looking information and statements are
based on current information and expectations that involve a number
of risks and uncertainties, which could cause actual results or
events to differ materially from those anticipated. These risks
include, but are not limited to, the risks related to
FirstService’s business, including those identified in
FirstService’s annual information form for the year ended December
31, 2019 under the heading “Risk factors” (a copy of which may be
obtained at www.sedar.com or as part of FirstService’s Form 40-F at
www.sec.gov). Forward-looking information and statements contained
in this news release are made as of the date hereof and are subject
to change. All forward-looking information and statements in this
news release are qualified by these cautionary statements. Except
as required by applicable law, FirstService undertakes no
obligation to update any forward-looking information and statement,
whether as a result of new information, future events or
otherwise.
COMPANY CONTACTS:
D. Scott PattersonPresident & Chief
Executive Officer
Jeremy RakusinChief Financial
Officer(416) 960-9566
FirstService (NASDAQ:FSV)
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