FirstService Completes $350 Million Revolver With TD, Others
FirstService Corporation announced that it has successfully completed the renewal of its revolving credit facility, increasing the amount to US$350 million, from US$275 million previously.
The revolving credit facility, which matures March 1, 2017, also provides access to additional financing of $100 million on an uncommitted basis through an “accordion” provision under the same terms, bringing the total financing capacity of the facility to $450 million.
The lead arranger for the financing was TD Securities. The syndicate of banks includes incumbents, The Toronto-Dominion Bank, JP Morgan Chase Bank, Bank of Montreal, HSBC Bank Canada, The Bank of Nova Scotia, Royal Bank of Canada and Bank of America, as well as new participants Canadian Imperial Bank of Commerce, National Bank of Canada, U.S. Bank and BankUnited.
“Our ability to complete a significant expansion of our credit facility on very competitive terms represents a major vote of confidence in FirstService by our lending syndicate. The new five-year commitment provides us with a highly competitive cost of debt capital, reflecting our financial strength, diversification, and track record of success,” said John B. Friedrichsen, senior vice president and CFO. “We look forward to expanding our strong relationships with our returning lenders and welcome the new participants to our bank syndicate,” he added.
“The increase in our credit facility for another five-year term will support our ambitious, but disciplined growth plans for the foreseeable future,” said Jay S. Hennick, founder and CEO. “The combination of this financing together with our growth strategy, proven business model, and focus on global real estate services, will allow us to continue to deliver strong returns for our shareholders in 2012 and beyond,” he concluded.
FirstService Corporation is a global provider in the rapidly growing real estate services sector, providing a variety of services in commercial real estate, residential property management and property services.