FirstService Corporation Announces Expansion and Extension of Unsecured Revolving Credit Facility
Toronto, Canada – February 26, 2025 – FirstService Corporation (TSX: FSV, NASDAQ: FSV) (“FirstService”), a leading provider of essential property services, announced today a significant expansion and extension of its unsecured revolving credit facility (the “Credit Facility”). The new Credit Facility, which will mature in February 2030, replaces the previous facility that was set to expire in February 2027.
Key Terms and Benefits
Under the amended Credit Facility, FirstService’s borrowing capacity has been increased to US$1.75 billion, up from the previous US$1.25 billion. This increase in capacity will provide the company with greater financial flexibility to support its growth strategies. Moreover, at any time during the term of the Credit Facility, FirstService has the right to increase the facility by up to an additional US$250 million on the same terms and conditions as the original Credit Facility.
Usage of Proceeds
The Credit Facility will continue to be utilized for working capital and general corporate purposes. Additionally, the proceeds from the Credit Facility may be used to fund future “tuck-under” acquisitions – a strategy where FirstService acquires a smaller company and integrates it into its existing operations.
Impact on FirstService
This expansion and extension of the Credit Facility represents a strong vote of confidence from the banking syndicate in FirstService’s financial position and future growth prospects. With an increased borrowing capacity, FirstService can pursue strategic growth opportunities more effectively and maintain a strong financial position for future investments.
Impact on Consumers and the World
The expanded Credit Facility will allow FirstService to continue providing essential property services to its residential and commercial customers worldwide. With a stronger financial foundation, the company can invest in technology, expand its service offerings, and potentially enter new markets, contributing to the overall growth and innovation within the property services industry.
Conclusion
FirstService’s expansion and extension of its unsecured revolving credit facility signifies a significant milestone in the company’s growth strategy. With increased borrowing capacity and the ability to pursue additional funding, FirstService is well-positioned to capitalize on strategic growth opportunities and maintain a strong financial position. This news not only benefits FirstService but also contributes to the ongoing growth and innovation within the property services industry.
- FirstService Corporation expands and extends its unsecured revolving credit facility
- New Credit Facility matures in February 2030, replacing the previous one in 2027
- Borrowing capacity increased to US$1.75 billion from US$1.25 billion
- FirstService can increase the Credit Facility by up to an additional US$250 million
- Proceeds from the Credit Facility will be used for working capital, general corporate purposes, and future acquisitions
- Strong vote of confidence from banking syndicate in FirstService’s financial position and future growth prospects
- Contributes to the ongoing growth and innovation within the property services industry
