Fairstone Financial Inc. Closes US$300 Million in Senior Notes

MONTREAL, July 2, 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$300 million at 7.875% Senior Notes due 2024 (the "Notes"). The Company simultaneously executed a cross-currency swap to Canadian dollars to cover its currency risk on the US denominated Notes.

"After successfully launching our asset-backed securitization platform earlier this year, this senior note issuance reflects the continued ability of Fairstone to attract capital markets' interest," said Scott Wood, President and CEO. "Additionally, it will enable efficient funding of our plan to help more underserved Canadians access responsible credit."

"We're pleased with the response to Fairstone's recent offering, resulting in a transaction that was well received by investors," said Oona Robinson, Executive Vice-President and Chief Financial Officer. "This proven access to a diversified set of institutional investors achieves our strategic objective of implementation of a rigorous capital structure and sets a clear path for continued access to the capital markets."

Fairstone intends to use the net proceeds from the Notes to repay a secured loan facility and for general corporate purposes.

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 as of March 31, 2019. 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/