Fairstone Financial Inc. Closes US$125 Million Add-On Offering to its Existing Senior Notes Due 2024

MONTREAL, Oct. 25, 2019 /PRNewswire/ - Fairstone Financial Inc. ("Fairstone"), Canada's leading non-bank provider of responsible lending solutions for near-prime borrowers, announced today the completion of a private Rule 144A and Regulation S offering, including a prospectus exempt offering under applicable Canadian securities laws, of US$125 million of additional notes at the issue price of 104% of principal amount under the indenture governing its existing US$300 million of 7.875% Senior Notes due 2024 ("the Notes"). This brings the aggregate principal amount of the Notes to US$425 million. The Company simultaneously executed a cross-currency swap to Canadian dollars to mitigate its currency risk on the US denominated add-on offering.

"We are pleased with the outcome of this financing transaction as we continue to grow our diversified sources of capital and lower our cost of funds to drive further business growth," said Scott Wood, President and Chief Executive Officer of Fairstone. "We received a favourable response to Fairstone's recent offering, resulting in yet another transaction that was well received by institutional investors."

Fairstone intends to use the net proceeds from the add-on offering to repay certain amounts outstanding on its securitization facilities.

This press release does not constitute an offer to sell or buy or the solicitation of an offer to buy or sell any security and shall not constitute an offer, solicitation, sale or purchase of any securities in any jurisdiction in which such offering, solicitation, sale or purchase would be unlawful.

The Notes have not been, and will not be, registered under the Securities Act of 1933, as amended (the "Securities Act"), or the securities laws of any other jurisdiction. The Notes may not be offered or sold within the United States to or for the account or benefit of any U.S. person unless such offer or sale would qualify for a registration exemption under the Securities Act and applicable state securities laws. The Notes were offered only to persons reasonably believed to be qualified institutional buyers in accordance with Rule 144A under the Securities Act and to certain non-U.S. persons outside the United States in accordance with Regulation S under the Securities Act. In addition, the Notes have not been and will not be qualified for distribution by the filing of a prospectus under the securities laws of any province or territory of Canada, and may not be offered or sold within Canada except pursuant to an exemption from the prospectus requirements of applicable Canadian securities laws. Any distribution of the Notes in Canada will be made only on a private placement basis exempt from the requirement to prepare and file a prospectus with the securities regulatory authorities in any province or territory where distributions of the Notes are made. Any resale of the Notes in Canada must be made in compliance with the requirements of applicable Canadian securities laws which will vary depending on the relevant jurisdiction, and which may require resales to be made under available statutory exemptions or under a discretionary exemption granted by the applicable Canadian securities regulatory authority.

About Fairstone Financial Inc.

Fairstone is Canada's leading non-bank provider of responsible lending solutions for near-prime borrowers with over $3 billion in assets on a consolidated basis. Fairstone, including through its predecessors, has close to a 100-year history of providing Canadians with access to responsible credit. The Company has two key business lines: lending directly to consumers through its branch network and online; and financing consumer retail and car purchases through retailers and dealerships. Headquartered in Montreal, Fairstone is privately-held by an investor group led by funds managed by affiliates of J.C. Flowers & Co. LLC and Värde Partners. More at Fairstone.ca.

SOURCE Fairstone Financial Inc.

Related Links

https://www.fairstone.ca/