TORONTO, March 2, 2021 /CNW/ - First National
Financial Corporation ("First National") (TSX: FN) (TSX: FN.PR.A)
(TSX: FN.PR.B) today announced the applicable dividend rates for
its cumulative 5-year rate reset Class A Preference Shares, Series
1 ("Series 1 Preference Shares") and cumulative floating rate Class
A Preference Shares, Series 2 ("Series 2 Preference Shares").
With respect to any Series 1 Preference Shares that remain
outstanding on March 31, 2021,
commencing as of such date, holders thereof will be entitled to
receive cumulative preferential cash dividends on a quarterly
basis, as and when declared by the Board of Directors of First
National. The annual dividend rate for the five-year period
commencing on April 1, 2021, and
ending on March 31, 2026 will be
2.895%, being equal to the 5-Year Government of Canada bond yield determined as at
10 am (Toronto time) March 2,
2021 plus 2.07%, as determined in accordance with the terms
of the Series 1 Preference Shares.
With respect to any Series 2 Preference Shares that remain
outstanding on March 31, 2021,
holders thereof will be entitled to receive floating rate
cumulative preferential cash dividends on a quarterly basis, as and
when declared by the Board of Directors of First National, based on
a dividend rate equal to the 90-day Canadian Treasury Bill plus
2.07% on an actual/365 day count basis, subject to certain
adjustments in accordance with the terms of the Series 2 Preference
Shares. The dividend rate for the period commencing on
April 1, 2021 and ending on
June 30, 2021 will be equal to
2.192%, as determined in accordance with the terms of the Series 2
Preference Shares.
Beneficial owners of Series 1 Preference Shares or Series 2
Preference Shares who wish to exercise their right of conversion
should communicate as soon as possible with their broker or other
nominee and ensure that they follow their instructions in order to
ensure that they meet the deadline to exercise such right, which is
5:00 p.m. (Toronto time) on March
16, 2021.
About First National Financial Corporation
First National Financial Corporation (TSX: FN, TSX: FN.PR.A,
TSX: FN.PR.B) is the parent company of First National Financial
LP, a Canadian-based originator, underwriter and servicer of
predominantly prime residential (single-family and multi-unit) and
commercial mortgages. With more than $118
billion in mortgages under administration, First National is
Canada's largest non-bank
originator and underwriter of mortgages and is among the top three
in market share in the mortgage broker distribution channel.
For more information, please visit www.firstnational.ca.
Forward-Looking Information
Certain information included in this news release may constitute
forward-looking information within the meaning of securities laws.
In some cases, forward-looking information can be identified by the
use of terms such as "may", "will, "should", "expect", "plan",
"anticipate", "believe", "intend", "estimate", "predict",
"potential", "continue" or other similar expressions concerning
matters that are not historical facts. Forward-looking information
may relate to management's future outlook and anticipated events or
results, and may include statements or information regarding the
future financial position, business strategy and strategic goals,
product development activities, projected costs and capital
expenditures, financial results, risk management strategies,
hedging activities, geographic expansion, licensing plans, taxes
and other plans and objectives of or involving the Company.
Particularly, information regarding growth objectives, any future
increase in mortgages under administration, future use of
securitization vehicles, operation of the underwriting and
fulfillment services business, industry trends and future revenues
is forward-looking information. Forward-looking information is
based on certain factors and assumptions regarding, among other
things, interest rate changes and responses to such changes, the
demand for institutionally placed and securitized mortgages, the
status of the applicable regulatory regime and the use of mortgage
brokers for single family residential mortgages. This
forward-looking information should not be read as providing
guarantees of future performance or results, and will not
necessarily be an accurate indication of whether or not, or the
times by which, those results will be achieved. While management
considers these assumptions to be reasonable based on information
currently available, they may prove to be incorrect. Forward
looking-information is subject to certain factors, including risks
and uncertainties listed under ''Risk and Uncertainties Affecting
the Business'' in the MD&A, that could cause actual results to
differ materially from what management currently expects. These
factors include reliance on sources of funding, concentration of
institutional investors, reliance on relationships with independent
mortgage brokers and changes in the interest rate environment. This
forward-looking information is as of the date of this release, and
is subject to change after such date. However, management and First
National disclaim any intention or obligation to update or revise
any forward-looking information, whether as a result of new
information, future events or otherwise, except as required under
applicable securities regulations.
SOURCE First National Financial Corporation