FirstService has expanded its revolving credit facility by $100 million, to a total borrowing capacity of $450 million.
The increased commitments under the facility were substantially oversubscribed by a syndicate of 10 banks, led by TD Bank and including JP Morgan Chase Bank, Bank of Montreal, Canadian Imperial Bank of Commerce, HSBC Bank, The Bank of Nova Scotia, U.S. Bank, Bank of America, National Bank of Canada and MUFG Union Bank.
The amended facility supersedes the prior facility, effected in January 2018 and which had a borrowing capacity which totaled $350 million (comprised of an original $250 million plus a $100 million accordion feature which was recently exercised in full).
The maturity date of the facility remains January 2023. The facility will continue to be utilized for working capital and general corporate purposes and to fund our tuck-under acquisition program.
“We appreciate the continued support and confidence of our bank group in completing this transaction,” said Jeremy Rakusin, chief financial officer. “The increased facility maintains our flexibility and capacity to fund FirstService’s operations and growth. Our investment-grade balance sheet remains very strong and well-balanced with the facility and our existing $150 million of privately-held long-term senior notes,” he concluded.
“This additional financing enables us to seamlessly continue to fund our tuck-under acquisition program,” said D. Scott Patterson, chief executive officer. “The transaction is also another endorsement of FirstService’s long-standing track record of strong financial performance.”