PrefBlog

This is a USD denominated cumulative perpetual (see SEDAR, company search “FirstService”, Document type “Security holders documents – English”, dated June 27, 2007) issued as a stock dividend in June, 2007.

Following their announcement of the sale of their security division, DBRS has announced it:

has today placed the Pfd-3 (low) rating of FirstService Corporation’s (FSC or the Company) Preferred Share issue Under Review with Developing Implications.

The action follows FSC’s statement that it intends to use the proceeds from the recently announced divestiture of its integrated security division, together with existing funds and available capital, to finance organic growth and acquisitions in its commercial real estate, residential property management, and property improvement services divisions.
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DBRS will also focus on FSC’s financial intentions, as we seek to gain comfort that credit metrics will remain appropriate for the current rating category within the context of the growth strategy and changing business profile. Prior to the divestiture, the Company’s debt balance was $331 million ($550 million lease-adjusted) at December 31, 2007 versus $230 million ($430 million lease-adjusted) at March 31, 2007, as a result of strong acquisition activity in its real estate services areas (total of $132 million in the first nine months of F2008). This has led debt-to-EBITDA for LTM ending December 31, 2007 to increase to 2.4 times (x) from 2.0x in F2007. (Corresponding lease-adjusted debt-to-EBITDAR has increased to 3.2x from 2.9x.)

FSV.PR.U is not tracked by HIMIPref™

This entry was posted on Tuesday, April 15th, 2008 at 5:29 pm and is filed under Issue Comments, US Pay. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.