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Toronto-Dominion Bank Leads $50MM Facility Upsize for FirstService

January 18, 2018, 07:42 AM
Filed Under: Real Estate

FirstService Corporation announced that it has expanded and extended its revolving credit 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 $250 million, up from $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 $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.

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