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TORONTO, Sept. 03, 2021 (GLOBE NEWSWIRE) -- Firm Capital Mortgage Investment Corporation (the “Corporation”) (TSX: FC) is pleased to announce that it has closed its previously announced public offering of $40,000,000 aggregate principal amount of 5.00% convertible unsecured subordinated debentures due September 30, 2028 of the Corporation (the “Debentures”) with a syndicate of underwriters bookrun by TD Securities Inc., National Bank Financial Inc. and CIBC Capital Markets, and including Scotiabank, Canaccord Genuity Corp., RBC Capital Markets, Desjardins Securities Inc., Echelon Wealth Partners Inc., iA Private Wealth Inc. and Raymond James Ltd. The Corporation granted the underwriters an over-allotment option to purchase up to $6,000,000 additional aggregate principal amount of Debentures, exercisable, in whole or in part, at any time until 30 days following today’s closing. If the over-allotment option is exercised in full, the gross proceeds of the offering will total $46,000,000.
The Debentures will trade on the Toronto Stock Exchange under the symbol “FC.DB.K”.
The net proceeds of the offering will be used for debt repayment, new investments and for general corporate purposes.
The Debentures bear interest at a rate of 5.00% per annum, payable semi-annually in arrears on the last day of March and September in each year, commencing on March 31, 2022, and mature on September 30, 2028 (the “Maturity Date”). The Debentures are convertible at the holder’s option into common shares of the Corporation (the “Shares”) at any time prior to the close of business on the earlier of the Maturity Date and the business day immediately preceding the date fixed for redemption at a conversion price of $17.75 per Share (the “Conversion Price”), subject to adjustment in certain circumstances.
The Debentures are not redeemable before September 30, 2024. On and after September 30, 2024 and prior to September 30, 2026, the Debentures are redeemable in whole or in part from time to time at the Corporation’s option at par plus accrued and unpaid interest, provided that the weighted average trading price of the Shares on the Toronto Stock Exchange during the 20 consecutive trading days ending on the fifth trading day preceding the date on which notice of redemption is given is not less than 125% of the Conversion Price. On and after September 30, 2026, the Debentures are redeemable, in whole or in part, from time to time at the Corporation’s option at any time at par plus accrued and unpaid interest.
The Debentures are direct, unsecured obligations of the Corporation, subordinated to senior indebtedness of the Corporation, ranking pari-passu to the Corporation’s existing convertible unsecured subordinated debentures.
Subject to specified conditions, the Corporation has the right to repay the outstanding principal amount of the Debentures, on maturity or redemption, through the issuance of Shares. The Corporation also has the option to satisfy its obligation to pay interest through the issuance and sale of Shares.
No securities regulatory authority has either approved or disapproved of the contents of this news release. The securities offered have not been, and will not be, registered under the United States Securities Act of 1933, as amended, or any state securities laws, and may not be offered, sold or delivered, directly or indirectly, in the United States, its possessions and other areas subject to its jurisdiction or to, or for the account or for the benefit of a U.S. person, unless an exemption from registration is available. This news release is for information purposes only and does not constitute an offer to sell or a solicitation of an offer to buy any securities of the Corporation in any jurisdiction.
https://www.globenewswire.com/news-release/2021/09/03/2291434/0/en/Firm-Capital-Mortgage-Investment-Corporation-Completes-40-Million-Bought-Deal-Financing.html