FirstService Corporation (NASDAQ:FSV) remained among the day losers and traded with change of -0.72% on volume of 19037 shares in the last session as compared to average volume of 43938 shares. During last trade its minimum price was $95.81 and it gained highest price of $96.98. FSV has total market capitalization of $4804442000. Its closing value stands at $96.48.
FirstService Corporation (NASDAQ:FSV) reported that it has completed its previously announced acquisition of approximately 95% of Global Restoration Holdings, LLC (“Global Restoration”), the second largest commercial and large loss property restoration firm in North America, for a purchase price of approximately $505 million. Global Restoration’s senior management team, including Jeff Johnson, Stacy Mazur and Dave Demos, continue to lead Global Restoration’s day-to-day operations and have retained the balance of the equity.
Headquartered in Denver, Colorado and founded in 1998, Global Restoration provides integrated end-to-end solutions encompassing mitigation, restoration and reconstruction services on behalf of blue chip, national clients which include large, multi-location commercial customers, property owners and insurance companies. Global Restoration operates under two highly recognized brands, Interstate Restoration in the U.S. and FirstOnSite Restoration in Canada, and employs approximately 1,400 staff operating out of 58 regional offices throughout North America. For the fiscal year ended December 31, 2018, Global Restoration generated revenues of $436 million and operating earnings of $40 million.
In connection with the completion of the acquisition, FirstService has entered into an $890 million amended and restated credit facility (the “New Credit Agreement”), consisting of its existing $450 million revolving credit facility and a new $440 million term loan. The maturity date of the revolving credit facility under the New Credit Agreement remains January 2023, and the maturity date of the term loan under the New Credit Agreement is June 2024. Repayment of the term loan is to be made in installments of 5% per annum, paid quarterly, commencing in September 2020, with the balance payable at maturity. The new term loan commitments under the New Credit Agreement were substantially oversubscribed by a syndicate of 12 banks, led by The Toronto-Dominion Bank and including Bank of Montreal, Canadian Imperial Bank of Commerce, HSBC Bank, The Bank of Nova Scotia, JP Morgan Chase Bank, U.S. Bank, Bank of America, MUFG Union Bank, National Bank, Raymond James Bank and Wells Fargo Bank.
The Global Restoration acquisition was funded through a combination of the new term loan, additional funds drawn under the revolving credit facility and available cash on hand. The revolving credit facility under the New Credit Agreement will continue to be utilized for working capital and general corporate purposes and to fund FirstService’s tuck-under acquisition program.
“We appreciate the strong endorsement and confidence of our bank group in providing us with the necessary financing to complete this significant acquisition,” said Jeremy Rakusin, Chief Financial Officer. “At the same time, we will continue to ensure we maintain financial flexibility to drive all growth initiatives across FirstService’s business lines,” he added.
“With the successful closing of the transaction, I am delighted to formally welcome the entire Global Restoration team into the FirstService family,” said Scott Patterson, Chief Executive Officer. “We are excited about the complementary fit between Global Restoration and our Paul Davis franchise system and look forward to working closely with both teams to accelerate growth in the property restoration industry,” he concluded.
Its earnings per share (EPS) expected to touch remained 28.10% for this year while earning per share for the next 5-years is expected to reach at 15.00%. FSV .
The price moved ahead of 2.23% from the mean of 20 days, 7.02% from mean of 50 days SMA and performed 17.15% from mean of 200 days price. Company’s performance for the week was -0.23%, 12.02% for month and YTD performance remained 40.89%.
Luke Byrne– Category – Financial
Luke Byrne holds degree is in Economics and have worked in accounting, finance, and database management. His most recent full-time position was with a non-profit, handling all in-house bookkeeping as well as the Membership Program and the member database. His current work is providing web content as well as proofreading and editing services. He possesses over 10 years of investment experience, and he is also certified in Risk Management Assurance. Luke is a self-taught investor and follows the value investing approach to picking stocks. He currently covers Financial News category for our site.
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