Firm Capital Mortgage arranges $20M debenture financing

Executive Summary

• Firm Capital Mortgage Investment Corp. entered into a bought‑deal financing for $20 million of 5.50% convertible unsecured subordinated debentures due Dec. 31, 2032, with an overallotment option that could increase gross proceeds to $23 million.
• The debentures are priced at $1,000 each, bear semi‑annual interest, and are convertible into common shares at $14.06 per share; they are non‑redeemable until Dec. 31, 2028 with conditional redemption features thereafter.
• Net proceeds will be used to repay existing debt and for general corporate purposes.

Key Details

• Principal Amount: $20 million aggregate principal (up to an additional $3 million via overallotment).
• Pricing: $1,000 per debenture; overallotment at the same price.
• Gross Proceeds Potential: $23 million if full overallotment is exercised.
• Interest Rate: 5.50% per annum, payable semi‑annually on the last day of June and December, starting Dec. 31, 2025.
• Maturity Date: Dec. 31, 2032.
• Conversion Terms: Convertible at holder’s option into common shares at $14.06 per share (subject to adjustment). Conversion may occur any time prior to the earlier of maturity or the business day before a redemption date.
• Redemption Features:
• Not redeemable before Dec. 31, 2028.
• Between Dec. 31, 2028 and Dec. 31, 2030, redeemable at par plus accrued interest if TSX‑listed share price ≥ 125% of conversion price over the prior 20‑day window.
• After Dec. 31, 2030, redeemable at any time at par plus accrued interest.
• Security: Direct, unsecured obligations; subordinated to senior debt; pari‑passu with existing convertible unsecured subordinated debentures.
• Use of Proceeds: Debt repayment and general corporate purposes.
• Closing Date: Expected on or about Oct. 14, 2025, subject to regulatory approvals.
• Underwriters: Syndicate led by CIBC Capital Markets and TD Securities; overallotment option exercisable up to 30 days post‑closing.
• Prospectus Filing: Prospectus supplement to be filed no later than Oct. 8, 2025 under the short‑form base shelf prospectus dated July 29, 2024.

Notable Quotes

(No executive quotes were provided in the release.)