Firms says proceeds will be used for debt repayment, new investments, and “general corporate purposes”
Firm Capital Mortgage Investment Corporation has announced that it has entered a $40 million bought deal financing agreement with a syndicate of underwriters bookrun by TD Securities and National Bank Financial.
In a statement, the firm said that it will sell on a bought deal basis $40 million worth of 5.00% convertible unsecured subordinated debentures due September 30, 2028 at a price of $1,000 per debenture.
According to Firm Capital, the offering is expected to close “on or about September 3, 2021” and is subject to certain conditions including, but not limited to, the receipt of all necessary regulatory approvals.
The firm added the net proceeds of the offering will be used for debt repayment, new investments, and for “general corporate purposes.”
Firm Capital Mortgage Investment, through its mortgage banker, Firm Capital Corporation, is a non-bank lender that offers residential and commercial short-term bridge and conventional real estate financing – including construction, mezzanine, and equity investments.
“The corporation achieves its investment objectives through investments in selected niche markets that are under-serviced by large lending institutions,” Firm Capital said in a statement.