Firm Capital Mortgage Investment Corp. is offering C$25 million of its convertible unsecured subordinated debentures at C$1,000 per debenture.
The debentures will bear interest at 5.40% per year, which will be paid semiannually in arrears on June 30 and Dec. 31 of each year, starting Dec. 31. The debentures will mature June 30, 2025.
Each debenture will be convertible into the company's common shares at any time prior to the earlier of the maturity date and redemption date at a conversion price of C$15.00 per share.
The company has also granted the underwriters a 30-day option to purchase up to about C$3.8 million in additional debentures. If the overallotment option is fully exercised, the gross proceeds will be approximately C$28.8 million. Firm Capital Mortgage intends to use the net proceeds to repay bank debt, to fund new investments and for general corporate purposes.
The offering is scheduled to close on or about June 21.
The offering involves the company selling, on a bought deal basis, to a syndicate of underwriters bookrun by TD Securities Inc., CIBC Capital Markets and Scotiabank.
