Fiera Capital Corporation Announces Significant Debenture Offering
MONTREAL — Fiera Capital Corporation (TSX: FSZ) is excited to unveil a new financial initiative involving the issuance of 7.75% Senior Subordinated Unsecured Debentures amounting to $60 million. This offering is part of a strategic approach to support the company’s growth objectives and improve its capital structure.
Details of the Offering
Fiera Capital has teamed up with an impressive lineup of financial institutions, including Scotiabank, CIBC Capital Markets, Desjardins Capital Markets, and RBC Capital Markets, who will act as joint bookrunners for the offering. In collaboration with other reputable underwriters, the total aggregate principal amount of debentures set for purchase is $60 million, with each debenture priced at $1,000.
Increased Flexibility with Additional Options
An option has been afforded to the underwriters, allowing them to acquire an additional $9 million in debentures under the same terms within 30 days following the completion of this offering. The expected closing for the offering is around early June.
Investment Returns and Maturity Insights
The debentures will provide an attractive interest rate of 7.75% annually, which is slated to be paid out semi-annually on June 30 and December 31 each year. The inaugural interest payout will occur on December 31, following the close of the offering, ensuring investors receive timely returns on their investment.
Understanding the Redemption Terms
Fiera Capital has structured the debentures to be non-redeemable until June of 2028, with exceptions tied to specific control changes within the company. When redeemable, the debentures can be bought back in part or whole at a price of 103.875% of their principal value, making future redemptions appealing as the first call date approaches.
Allocation of Proceeds
The proceeds generated from this offering are aimed at advancing the company's corporate strategies. Specifically, they are designated for funding the redemption of existing 2026 Senior Subordinated Unsecured Debentures, as planned for December 31, 2025. Following this use, any temporarily available funds will be allocated to reduce debt under Fiera Capital’s revolving credit facility.
Rating and Financial Security of the Debentures
These new debentures will be classified as direct, senior subordinated unsecured obligations, ranking equally among themselves while also taking precedence over other unsecured debts of the company. This tiered structure affords substantial safety to the investors, positioning the debentures favorably within the company’s overall financial framework.
Regulatory Considerations and Compliance
Fiera Capital is committed to following best practices and regulations by submitting a preliminary short-form prospectus with Canadian securities regulators. The successful offering will also reflect compliance with the Toronto Stock Exchange's regulations, reiterating Fiera’s commitment to transparency and governance.
About Fiera Capital Corporation
Fiera Capital stands as a prominent independent asset management firm, recognized for its diverse portfolio solutions aimed at institutional, private, and financial clients across various global markets. With a mission focused on delivering tailored investment management services, the firm continuously seeks to enhance its standing within the competitive sphere of asset management.
Frequently Asked Questions
What is the offering amount for Fiera Capital's debentures?
The offering amount for Fiera Capital's debentures is $60 million.
What is the interest rate on the debentures?
The debentures will carry an interest rate of 7.75% per annum.
When will the first interest payment be made?
The first interest payment will be made on December 31 following the closing of the offering.
What are the redemption terms for the debentures?
The debentures are redeemable starting from June 30, 2028, under specific conditions, including a change of control.
Who are the underwriters involved in the offering?
The underwriters include Scotiabank, CIBC Capital Markets, Desjardins Capital Markets, and RBC Capital Markets, among others.
