First National Financial Corporation to Issue $200 Million of 5-Year Unsecured Notes
TORONTO, Nov. 6, 2020 /CNW/ - First National Financial Corporation (TSX: FN) (TSX: FN.PR.A) (TSX: FN.PR.B) ("First National") today announced its intention to issue $200,000,000 of new senior unsecured notes.
Priced at par, the notes will be issued pursuant to a private placement under an offering memorandum for a five-year term maturing on November 17, 2025. The notes will bear interest at 2.961% payable in semi-annual payments commencing May 17, 2021. First National intends to use the net proceeds of the offering to make a loan to First National Financial LP (the "Partnership"), which will allow the Partnership to repay indebtedness under its bank credit facility and use for general partnership purposes. The offering is expected to close on November 16, 2020. The senior unsecured notes were offered through a syndicate of dealers co-led by RBC Capital Markets and TD Securities, supported by BMO Nesbitt Burns, CIBC World Markets, National Bank Financial, Scotia Capital and Laurentian Bank Securities.
"With 42 investors and a credit spread of 2.55% over the benchmark bond, this is a testament to the market's confidence in First National," said Robert Inglis, Chief Financial Officer. "We are very pleased with market reception in these relatively turbulent times."
About First National Financial Corporation
First National Financial Corporation (TSX: FN) (TSX: FN.PR.A) (TSX: FN.PR.B) is the parent company of the Partnership, a Canadian-based originator, underwriter and servicer of predominantly prime residential (single-family and multi-unit) and commercial mortgages. With over $117 billion in mortgages under administration, First National is Canada's largest non-bank originator and underwriter of mortgages and is among the top three in market share in the mortgage broker distribution channel. For more information, please visit www.firstnational.ca.
Forward-Looking Information
Certain information included in this news release may constitute forward-looking information within the meaning of securities laws, including the expected closing date and the intended use of proceeds of the offering. Forward-looking information is based on certain factors and assumptions including future debt requirements. Forward-looking information should not be read as providing guarantees of future performance or results, and will not necessarily be an accurate indication of whether or not, or the times by which, those results will be achieved. While management considers these assumptions to be reasonable based on information currently available, they may prove to be incorrect. Forward looking-information is subject to certain factors, including risks and uncertainties listed under ''Risk and Uncertainties Affecting the Business'' in the management's discussion and analysis ("MD&A") of financial condition and results of operations of First National prepared as of October 27, 2020 filed at www.sedar.com that could cause actual results to differ materially from what management currently expects. This forward-looking information is as of the date of this release, and is subject to change after such date. However, management and First National disclaim any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required under applicable securities regulations.
SOURCE First National Financial Corporation
Robert Inglis, Chief Financial Officer, First National Financial Corporation, Tel: 416-593-1100, Email: [email protected]; Ernie Stapleton, President, Fundamental, Tel: 905-648-9354, Email: [email protected]
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