September 22, 2010 15:30 ET

Firm Capital Mortgage Investment Trust Announces $27,500,000 Bought Deal Financing

TORONTO, ONTARIO--(Marketwire - Sept. 22, 2010) -


Firm Capital Mortgage Investment Trust ("the Trust") (TSX:FC.UN) today announced that it has entered into an agreement to sell, on a bought deal basis to a syndicate of underwriters led by TD Securities Inc., $27,500,000 aggregate principal amount of 5.75% convertible unsecured subordinated debentures, due October 31, 2017 (the "Debentures") at a price of $1,000 per Debenture. The Trust has granted the Underwriters an over-allotment option, exercisable in whole or in part at any time up to 30 days following closing, pursuant to which the underwriters may purchase up to an additional $4,125,000 principal amount of Debentures, on the same terms. If the over-allotment option is exercised in full, the gross proceeds from the offering will be $31,625,000.

Each Debenture is convertible into Units at the option of the holder at a conversion price of $15.90 (or 62.8931 Units per $1,000 principal amount of Debentures).

The offering is scheduled to close on October 13, 2010, and is subject to regulatory approval.

The net proceeds of the offering will be used to repay debt, to fund future mortgage investments and for general Trust purposes.

The securities being offered have not been and will not be registered under the United States Securities Act of 1933 and accordingly will not be offered, sold or delivered, directly or indirectly within the United States, its possessions and other areas subject to its jurisdiction or to, or for the account or for the benefit of a U.S. person, except in limited circumstances.

About The Trust

The Trust, through its mortgage banker, Firm Capital Corporation, is a non-bank lender providing residential and commercial short-term bridge and conventional real estate financing, including construction, mezzanine and equity investments. The Trust's investment objective is the preservation of Unitholders' equity, while providing Unitholders with a stable stream of monthly distributions from investments. The Trust achieves its investment objectives through investments in selected niche markets that are under-serviced by large lending institutions. Lending activities to date continue to develop a diversified mortgage portfolio, producing a stable return to Unitholders. Full reports of the financial results of the Trust are outlined in the Financial Statements and the related Management Discussion and Analysis of the Trust, available on the SEDAR website at

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of applicable securities laws including, among others, statements concerning our objectives, operations and our financial performance and condition as well as statements with respect to management's beliefs, estimates, and intentions, and similar statements concerning anticipated future events, results, circumstances, performance or expectations that are not historical facts. Forward-looking statements generally can be identified by the use of forward-looking terminology such as "outlook", "objective", "may", "will", "expect", "intent", "estimate", "anticipate", "believe", "should", "plans" or "continue" or similar expressions suggesting future outcomes or events. Such forward-looking statements reflect management's current beliefs and are based on information currently available to management.

These statements are not guarantees of future performance and are based on our estimates and assumptions that are subject to risks and uncertainties, including those described in our Annual Information Form under "Risk Factors" (a copy of which can be obtained at, which could cause our actual results and performance to differ materially from the forward-looking statements contained in this circular. Those risks and uncertainties include, among others, risks associated with mortgage lending, dependence on the Trust's trust manager and mortgage banker, competition for mortgage lending, real estate values, interest rate fluctuations, environmental matters, Unitholder liability and the introduction of new tax rules. Material factors or assumptions that were applied in drawing a conclusion or making an estimate set out in the forward-looking information include, among others, that the Trust is able to invest in mortgages at rates consistent with rates historically achieved; adequate mortgage investment opportunities are presented to the Trust; and adequate bank indebtedness and bank loans are available to the Trust. Although the forward-looking information continued in this press release is based upon what management believes are reasonable assumptions, there can be no assurance that actual results and performance will be consistent with these forward-looking statements.

All forward-looking statements in this press release are qualified by these cautionary statements. Except as required by applicable law, the Trust undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

Contact Information

  • Firm Capital Mortgage Investment Trust
    Eli Dadouch
    President & Chief Executive Officer
    (416) 635-0221