Company also extends $300 million warehouse credit facility to 2012
By Angela McDaniels
Tacoma, Wash., May 13 - First Investors Financial Services Group, Inc. agreed to sell $12.5 million of common stock to a group of investors in two tranches, according to a company news release.
The 1,666,667 shares will be sold for $7.50 each, which is a 2.05% premium over the company's $7.35 closing share price on May 12.
The first tranche for $5 million, or 666,667 shares, closed on May 13. The second tranche of $7.5 million, or 1 million shares, will close in November.
The investors include JAM Special Opportunities Fund II, a private equity fund controlled by Seymour Jacobs, a director of the company and other affiliated investors.
The company will use the proceeds to fund growth in its portfolio of automobile receivables and for general corporate purposes.
Falconbridge Capital Markets LLC acted as an adviser to the company for the transaction.
Warehouse facility extended
The company also announced that it reached an agreement with its lender to extend its warehouse credit facility to August 2012.
First Investors said it elected to reduce the commitment to $300 million from $350 million in light of its intent to access the term securitization market on a more frequent basis.
Houston-based First Investors is a specialized consumer finance company that originates and retains automobile finance receivables.
| Issuer: | First Investors Financial Services Group, Inc.
|
| Issue: | Common stock
|
| Amount: | $12.5 million
|
| Shares: | 1,666,667
|
| Price: | $7.50
|
| Warrants: | No
|
| Investors: | JAM Special Opportunities Fund II, others
|
| Settlement dates: | May 13 for $5 million; November for $7.5 million
|
| Stock symbol: | Pink Sheets: FIFS
|
| Stock price: | $7.35 at close May 12
|
| Market capitalization: | $34.38 million
|
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