New sharesShare price will likely remain under pressure with the debenture redemption announced. A couple million new shares that people will get at lower pices. I'll be adding to my position if there's a drop late September.
TSX Symbol: FC
TORONTO , Aug. 14, 2017 /CNW/ - Firm Capital Mortgage Investment Corporation (the "Corporation") (FC.TO) is pleased to announce that it intends to redeem early its outstanding $31,443,000 aggregate principal amount of 5.75% convertible unsecured subordinated debentures of the Corporation (the "Debentures") due October 31, 2017 , effective September 20, 2017 (the "Redemption Date"). The Debentures, which are listed and posted for trading on the Toronto Stock Exchange under the symbol FC.DB.A, will cease trading subsequent to the Redemption Date.
A redemption notice has been delivered to the Debenture trustee and provides for the redemption with freely tradeable common shares in the capital of the Corporation (the "Shares") of the aggregate principal amount of $31,443,000 and all accrued and unpaid interest to but excluding the Redemption Date.
THE CORPORATION HAS DETERMINED TO PERMIT HOLDERS OF DEBENTURES TO ELECT TO RECEIVE CASH IN LIEU OF SHARES IN CONNECTION WITH SUCH REDEMPTION, PROVIDED THAT HOLDERS MAKE SUCH ELECTION THROUGH THEIR RESPECTIVE BROKERS ON OR PRIOR TO 5:00 P.M. (EDT) ON AUGUST 30, 2017 . If a holder of Debentures does not make such an election prior to the election deadline, the Corporation will, in accordance with the trust indenture governing the terms of the Debentures (the "Indenture"), satisfy the aggregate redemption price by issuing and delivering that number of freely tradeable Shares obtained by dividing the aggregate redemption price by 95% of the weighted average market price per Share for the preceding 20 trading days ending on the fifth trading day preceding the Redemption Date (being September 13, 2017 ) (the "Current Market Price"), as set out in the Indenture. Assuming a Current Market Price of $13.15 , being the closing price of the Shares on the date hereof, the annual yield on the Shares based on dividends made by the Corporation in 2016 would have been 7.35%. Holders of Debentures should contact their broker in order to elect for cash payment in respect of the redemption.