On June 29, 2023, Fiera Capital Corporation, a leading independent asset management firm, completed a bought deal public offering of $65 million aggregate principal amount of hybrid debt securities in the form of 8.25% senior subordinated unsecured debentures at a price of $1,000 per debenture.
RBC Capital Markets, CIBC Capital Markets and Desjardins Capital Markets acted as joint-bookrunners, on behalf of a syndicate of underwriters which also included National Bank Financial Inc., Scotia Capital Inc., BMO Nesbitt Burns Inc., TD Securities Inc., Raymond James Ltd. and iA Private Wealth Inc.
The debentures bear interest at a rate of 8.25% per annum, payable semi-annually in arrears on June 30 and December 31 of each year, with the first interest payment on December 31, 2023. The debentures will mature on December 31, 2026. Fiera Capital will have the option to satisfy its obligation to repay the principal amount of the debentures due at redemption or maturity by issuing and delivering that number of freely tradeable Class A subordinate voting shares in accordance with the terms of the indenture. The debentures will not be convertible into shares at the option of the holders at any time. The debentures trade on the Toronto Stock Exchange under the symbol “FSZ.DB.B”.
The net proceeds of the offering were used to partially fund the redemption of Fiera Capital’s $110 million aggregate principal amount of 5.60% senior subordinated unsecured debentures due July 31, 2024 and for general corporate purposes.
Fasken represented Fiera Capital with a team that included Jean Michel Lapierre, Jean-Pierre Chamberland, Alexandre Morin, Damien Hallé-Hannan and Geneviève Richard (capital markets), Félix Gutierrez (financial institutions) and Ryan Rabinovitch and Andrew Haikal (tax).
Jurisdiction
- Québec
