FirstService Increases Debt Financing Capacity and Flexibility with Existing Senior Unsecured Loans… | New


TORONTO, Sept. 29, 2022 (GLOBE NEWSWIRE) — FirstService Corporation (TSX: FSV; NASDAQ: FSV) (“FirstService”) announced today that it has entered into two new non-committal, revolving financing facilities (the ” Facilities”) for potential future issuances of private placements of senior unsecured notes (“Notes”) aggregating US$450 million from its existing lenders, NYL Investors LLC (“New York Life”) up to US$150 million US dollars and PGIM Private Capital, direct private debt and structured debt equity investment affiliate of PGIM, Inc. (“Prudential”), up to US$300 million, in each case, net of any existing obligation held by them. The facilities each have a three-year term ending September 29, 2025. FirstService has the ability to issue additional tranches of notes under the facilities, subject to acceptance by New York Life or Prudential, with maturities variables determined by FirstService, and with coupons. determined at the time of each issue of Notes.

In connection with the closing of the New York Life facility, FirstService issued, in a private placement to New York Life, US$60 million of 4.53% Notes due September 29 2032. With the 3.84% US$90 million notes previously in circulation. due January 16, 2025, which are equally owned by New York Life and Prudential, FirstService currently has US$150 million of notes issued and outstanding, leaving US$300 million of remaining capacity under the facilities at actual hour. The proceeds of any notes issued are intended to be used for working capital and general corporate purposes and to fund future joint acquisitions, as well as the potential repayment of amounts outstanding under the revolving bank credit facility of FirstService. The covenants and restrictions under the facilities are substantially equivalent to those contained in FirstService’s revolving bank credit facility.

“We appreciate the longstanding relationships and support of Prudential and New York Life, both of which have participated for many years as lenders to our capital structure. The facilities offer us the potential for additional liquidity, financial flexibility and a streamlined process to draw on multiple tranches of bonds of varying amounts and durations over the next three years,” said Jeremy Rakusin, financial director. “These agreements and the concurrent issuance of US$60 million 10-year notes have also further optimized our fixed and floating debt mix and improved the balance between our short- and long-term debt funding obligations, strengthening our debt capacity and the overall strength of our balance sheet to support our future growth,” he concluded.

About FirstService Corporation

FirstService Corporation is a North American leader in the real estate services industry, serving its customers through two industry-leading service platforms: FirstService Residential, the largest manager of residential communities in North America; and FirstService Brands, one of North America’s largest providers of essential real estate services, delivered through individually branded franchise systems and company-owned operations.

FirstService generates more than $3.4 billion in annual revenue and has approximately 25,000 employees in North America. With significant insider ownership and an experienced management team, FirstService has a long-term track record of creating superior shareholder value and returns. FirstService’s common shares trade on 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

Forward-looking statements

This press release contains or may contain forward-looking statements. Much of this information can be identified by words such as “expect”, “expected”, “will”, “estimated” or similar expressions suggesting future results or events. FirstService believes that the expectations reflected in such forward-looking statements are reasonable, but there can be no assurance that such expectations will prove to be correct and undue reliance should not be placed on such forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from any future results, performance or achievements contemplated in the forward-looking statements. These factors include: (i) general economic and business conditions, which will, among other things, impact the demand for FirstService’s services and the cost of providing the services; (ii) FirstService’s ability to implement its business strategy, including FirstService’s ability to acquire suitable acquisition candidates on acceptable terms and successfully integrate newly acquired businesses into its existing business; (iii) changes in or 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, 2021 under the heading “Risk Factors” (a copy of which may be obtained at and the annual report on Form 40-F filed with the United States Securities and Exchange Commission (a copy of which may be obtained at and subsequent filings (the factors of which are adopted herein). The forward-looking statements contained in this press release are made as of the date hereof and are subject to change. All forward-looking statements contained in this press release are qualified by these cautionary statements. Except as required by applicable securities laws, we do not intend or undertake to update or revise the forward-looking statements contained in this press release to reflect current information, events, results or circumstances. later or otherwise.


D. Scott Patterson

Chief executive officer

(416) 960-9566

Jeremy Rakusin

Financial director

(416) 960-9566

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