Firm Capital Mortgage Investment Corporation Announces $20 Million Bought Deal Financing

Executive Summary

• Firm Capital Mortgage Investment Corporation announced a bought‑deal private placement of $20 million (aggregate principal) of 5.50% convertible unsecured subordinated debentures, with an over‑allotment option that could increase gross proceeds to $23 million.
• The debentures are convertible at $14.06 per share and bear semi‑annual interest; they mature on December 31 2032 and have redemption features beginning in 2028.
• Net proceeds will be used to repay existing debt and for general corporate purposes.

Key Details

• Offering Size: $20,000,000 principal amount of debentures; over‑allotment option up to an additional $3,000,000 (total possible gross proceeds $23,000,000).
• Pricing: $1,000 per debenture (par value).
• Interest Rate: 5.50% per annum, payable semi‑annually in arrears on the last day of June and December, starting Dec 31 2025.
• Maturity: December 31 2032.
• Conversion Terms: Convertible at holder’s option any time before the earlier of maturity or redemption date at $14.06 per common share (subject to adjustments).
• Redemption Features:
• Not redeemable prior to Dec 31 2028.
• Between Dec 31 2028 and Dec 31 2030, redeemable at par plus accrued interest if TSX weighted‑average price ≥125% of conversion price over the preceding 20‑day period.
• After Dec 31 2030, redeemable at any time at par plus accrued interest.
• Use of Proceeds: Debt repayment and general corporate purposes.
• Closing Date: Expected on or about October 14 2025, subject to regulatory approvals and customary conditions.
• Underwriters: Syndicate led by CIBC Capital Markets and TD Securities; over‑allotment option exercisable up to 30 days after closing.
• Prospectus: Issued under a short‑form base shelf prospectus dated July 29 2024; supplement to be filed no later than October 8 2025 and made available on SEDAR+.

Notable Quotes

(No direct quotes were included in the release.)