Firm Capital Mortgage closes $25M debenture financing

Executive Summary

• Firm Capital Mortgage Investment Corp. completed a $25 million public offering of 5.50% convertible unsecured subordinated debentures due Dec. 31, 2032 (potentially up to $28.75 million with overallotment).
• Net proceeds will be used to repay existing indebtedness, strengthening the company’s balance sheet.
• The debentures are listed on the Toronto Stock Exchange (symbol FC.DB.M) and carry conversion rights at $14.06 per share, with redemption features beginning Dec. 31, 2028.

Key Details

• Offering Size: $25 million aggregate principal amount; overallotment option for an additional $3.75 million, bringing potential gross proceeds to $28.75 million.
• Interest Rate: 5.50% per annum, payable semi‑annually on the last day of June and December, starting Dec. 31, 2025.
• Maturity/Redemption: Matures Dec. 31, 2032; not redeemable before Dec. 31, 2028. Redemption allowed 2028‑2030 at par plus accrued interest if TSX price ≥125% of conversion price; thereafter redeemable at any time at par plus accrued interest.
• Conversion Terms: Convertible at holder’s option into common shares at $14.06 per share (subject to adjustments) prior to the earlier of maturity or redemption notice date.
• Underwriters/Syndicate: Book‑run by CIBC Capital Markets and TD Securities Inc.; participants include Canaccord Genuity, National Bank Financial, RBC Capital Markets, Scotiabank, ATB Securities, Desjardins Securities, iA Private Wealth, Raymond James Ltd., Ventum Financial.
• Listing: Debentures will trade on the Toronto Stock Exchange under ticker “FC.DB.M”.
• Use of Proceeds: Net proceeds earmarked to repay existing indebtedness.
• Security/Ranking: Direct, unsecured obligations; subordinated to senior debt and pari‑passu with existing convertible unsecured subordinated debentures.
• Additional Rights: Corporation may satisfy interest payments via share issuances; may also redeem principal by issuing shares under specified conditions.

Notable Quotes

(No executive quotes were provided in the release.)