FOR: FIRSTSERVICE CORPORATION

COMPANY CONTACT:
Jay S. Hennick
President & Chief Executive Officer
FirstService Corporation
(416) 960-9500

D. Scott Patterson
Senior Vice President & CFO
FirstService Corporation
(416) 960-9500

INVESTOR RELATIONS:
Jeffrey Elliott
Jeffrey Elliott Communications
(416) 250-1078

FOR IMMEDIATE RELEASE

TSE: FSV
Nasdaq: FSRV

 

FIRSTSERVICE INCREASES CREDIT FACILITY, SELLS TWO SMALL BUSINESS UNITS

 

TORONTO, Ontario (April 15, 1999) -- FirstService Corporation (NASDAQ: FSRV; TSE: FSV) today announced that it has amended and restated its lending agreement to increase credit availability and split its senior debt facilities into Canadian dollar and US dollar tranches.

The amended facilities, arranged by the Company's existing syndicate of banks, incorporate a more tax efficient structure and provide approximately Cdn. $47 million of additional credit to fund potential acquisitions. Terms of the facilities remain unchanged from those arranged in June 1998.

FirstService now has available credit facilities of Cdn. $50 million and US $130 million of which approximately Cdn. $24.0 million and US $67.0 million are currently drawn.

Separately, the Company announced the sale of two non-strategic business units: Gazebo Landscape Maintenance, Inc. and Prime Pest Control Inc., both based in Boca Raton, Florida. The businesses, unrelated to FirstService's Community Association Management division, generated revenues of approximately Cdn. $9.0 million in the most recent twelve month reporting period. Terms of the transactions were not disclosed.

FirstService Corporation is a leader in the rapidly growing service sector, providing a variety of specialized Property and Business Services to corporate, government and residential customers throughout North America including community association management, security, lawn care, franchising, business outsourcing and specialized trade material fulfillment.

Certain statements included in this release constitute "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 (the "Reform Act"). Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, the following: general economic and business conditions, which will, among other things, impact demand for the Company's services, service industry conditions and capacity; the ability of the Company to implement its business strategy, including the Company's ability to acquire suitable acquisition candidates on acceptable terms and successfully integrate newly acquired businesses with its existing businesses; changes in or the failure to comply with government regulations (especially safety and environmental laws and regulations); and other factors which are described in the Company's filings with the Securities and Exchange Commission.