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FIRSTSERVICE CORPORATION COMPLETES $8.0M PRIVATE PLACEMENT AND CONVERTS $2.0M OF ITS OUTSTANDING DEBENTURES INTO EQUITY

 TORONTO, Dec. 15 /PRNewswire/ -- FirstService Corporation ("FirstService") today announced that it has completed an $8.0M private placement of debt and equity through its agents Gordon Capital Corporation and First Marathon Securities Limited.
 The $5.0M senior debt component will be used to finance the repayment of existing debt and the balance, together with the proceeds from the $3.0M equity private placement, will be used to assist in the financing of a new strategic acquisition proposed for fiscal 1993 and to provide FirstService with the working capital necessary for further internal expansion.
 Contemporaneously with the completion of the Private Placement, all of the outstanding Subordinated Convertible Debentures of FirstService (a total of $2,035,000) were converted into equity in accordance with their terms.
 "The Private Placement and Debenture Conversion increases our cash position and strengthens our balance sheet, both of which will enable us to actively pursue our acquisition plans and to continue our strategy of geographic expansion of existing businesses", stated Jay Hennick, President of FirstService. "We will continue to pursue our goal of becoming one of North America's leading providers of "brand name" residential and commercial services."
 FirstService companies and franchisees operate across Canada and in more than 30 of the United States and service in excess of 185,000 customers annually. FirstService "brand name" companies include:
 (A) College Pro Painters and Certa ProPainters, which together form the largest residential painting company in the world;
 (B) Chemlawn Canada and Green Lawn Care, which together form Greenspace Services Ltd. and represent the fifth largest lawn care company in North America;
 (C) Cleanol Services Inc., which is the largest drapery, carpet and upholstery cleaning company in Canada; and
 (D) Superior Pool, Spa & Leisure Ltd., which is one of Canada's leading residential and facility management companies.
 In the year ended Sept. 30, 1992, FirstService generated system wide sales of approximately $72.0M (up from $36.5M for the same period in 1991) and corporate revenues of over $43.0M (up from $15.5M) in 1991.
 -0- 12/15/92
 /CONTACT: Jay S. Hennick, president and chief executive officer, or Newton Glassman, executive vice president, 416-365-3704, of FirstService Corporation/


CO: FirstService Corporation ST: Ontario IN: SU:

SH -- NY027 -- 7129 12/15/92 11:03 EST
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Publication:PR Newswire
Date:Dec 15, 1992
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