CPE News (6.23.2022) – Fiera Capital Corporation (TSX: FSZ) has raised $100 million from Fonds de solidarité FTQ by way of private placement of a senior subordinated unsecured debenture in a principal amount of $100 million at par.
Net proceeds of the private placement will be used in connection with the previously announced redemption of all of the $86.25 million aggregate principal amount of its 5.00% convertible unsecured subordinated debentures due June 30, 2023, which will be completed on June 30, 2022, and the remaining balance will be applied against amounts drawn under Fiera Capital’s revolving credit facility.
Fiera Capital Corporation is an independent asset management firm with a growing global presence and approximately $174.5 billion in AUM as at March 31, 2022.
Fiera Capital Corporation is controlled by Fiera Capital L.P., an entity majority owned indirectly by Executive Chairman Jean-Guy Desjardins and minority owned by Desjardins Financial Holding Inc.
photo credit: Fiera Capital
News Release
Fiera Capital Corporation Announces Private Placement with the Fonds de solidarité FTQ of $100 Million Principal Amount Senior Subordinated Unsecured Debenture
MONTREAL, June 23, 2022 /CNW Telbec/ – Fiera Capital Corporation (“Fiera Capital” or the “Company”) (TSX: FSZ) is pleased to announce that it has completed today the private placement of a senior subordinated unsecured debenture in a principal amount of $100 million (the “Debenture”) to Fonds de solidarité FTQ issued at par.
The Debenture bears interest at a rate of 6.00% per annum, payable semi-annually in arrears, and will mature on June 30, 2027. The Debenture will be redeemable in whole or in part at the Company’s option, before June 30, 2026, at a price equal to the principal plus accrued and unpaid interest and a premium calculated in accordance with the terms of the Debenture and, on or after June 30, 2026, at par plus accrued and unpaid interest.
The Company will have the option to satisfy the redemption price or repay the principal amount of the Debenture due at redemption or maturity and pay interest on the Debenture on each interest payment date by issuing and delivering freely tradeable Class A subordinate voting shares. The Debenture will not be convertible into Class A subordinate voting shares at the option of the holder. The Debenture ranks pari passu with the Company’s 5.60% senior subordinated unsecured debentures maturing July 31, 2024.
The net proceeds of the private placement of the Debenture will be used in connection with the previously announced redemption of all of the $86.25 million aggregate principal amount of its 5.00% convertible unsecured subordinated debentures due June 30, 2023, which will be completed on June 30, 2022, and the remaining balance will be applied against amounts drawn under the Company’s revolving credit facility.
“We are pleased with the completion of this private placement which represents another step in the implementation of an optimal capital structure and prudent management of our overall leverage.” said Lucas Pontillo, Executive Vice President and Global Chief Financial Officer. “We also strive to continue to develop strong financial partnerships with key institutional investors and appreciate the relationship we have developed with the Fonds de solidarité FTQ and their commitment to Fiera Capital.”
Forward-Looking Statements
This document contains forward-looking statements relating to future events or future performance and reflecting management’s expectations or beliefs regarding future events including business and economic conditions and Fiera Capital’s growth, results of operations, performance and business prospects and opportunities. Forward-looking statements may include comments with respect to Fiera Capital’s objectives, strategies to achieve those objectives, expected financial results, and the outlook for Fiera Capital’s businesses and for the Canadian, American, European, Asian and other global economies. Such statements reflect management’s current beliefs and are based on factors and assumptions it considers to be reasonable based on information currently available to management and may typically be identified by terminology such as “believe”, “expect”, “plan”, “anticipate”, “estimate”, “may increase”, “may fluctuate”, “predict”, “potential”, “continue”, “target”, “intend” or the negative of these terms or other comparable terminology and similar expressions of future or conditional verbs, such as “will,” “should,” “would” and “could.”
By their very nature, forward-looking statements involve numerous assumptions, inherent risks and uncertainties, both general and specific, and the risk that predictions, forecasts, projections, expectations or conclusions will not prove to be accurate. The uncertainty created by the COVID-19 pandemic has heightened such risk given the increased challenge in making predictions, forecasts, projections, expectations, or conclusions. As a result, the Company does not guarantee that any forward-looking statement will materialize and readers are cautioned not to place undue reliance on these forward-looking statements. A number of important factors, many of which are beyond Fiera Capital’s control, could cause actual events or results to differ materially from the predictions, forecasts, projections, expectations, or conclusions expressed in such forward-looking statements which include, but are not limited to, risks related to investment performance and investment of the assets under management.
When relying on forward-looking statements in this document and any other disclosure made by Fiera Capital, investors and others should carefully consider the preceding factors, other uncertainties and potential events. Fiera Capital does not undertake to update or revise any forward-looking statements, whether written or oral, that may be made from time to time by or on its behalf in order to reflect new events or circumstances, except as required by applicable laws.
About Fiera Capital Corporation
Fiera Capital is a leading independent asset management firm with a growing global presence and approximately $174.5 billion in assets under management as of March 31, 2022. The Company delivers customized and multi-asset solutions across public and private market asset classes to institutional, financial intermediary and private wealth clients across North America, Europe and key markets in Asia. Fiera Capital’s depth of expertise, diversified investment platform and commitment to delivering outstanding service are core to our mission of being at the forefront of investment management science to create sustainable wealth for clients. Fiera Capital trades under the ticker FSZ on the Toronto Stock Exchange. www.fieracapital.com
Headquartered in Montreal, Fiera Capital, with its affiliates in various jurisdictions, has offices in over a dozen cities around the world, including New York (U.S.), London (UK), and Hong Kong (SAR).
In the U.S., asset management services are provided by the Company’s affiliates who are investment advisers that are registered with the U.S. Securities and Exchange Commission (SEC) or exempt from registration. Registration with the SEC does not imply a certain level of skill or training. For details on the particular registration of, or exemptions therefrom relied upon by, any Fiera Capital entity, please consult this webpage.
Additional information about Fiera Capital Corporation, including the Company’s annual information form, is available on SEDAR at www.sedar.com.
SOURCE Fiera Capital Corporation
For further information: Analysts and investors, Marie-France Guay, Senior Vice President, Treasury and Investor Relations, Fiera Capital Corporation, 514 294-5878, mguay@fieracapital.com; Media inquiries, Alex-Anne Carrier, Senior Advisor, External Communications, Fiera Capital Corporation, 514 262-5668, acarrier@fieracapital.com