First Investors Financial Services Group, Inc. announced that it will extend its warehouse credit facility to August 2012. Under the terms of the renewal, the company plans to reduce its commitment to $300 million from $350 million and said it intends to access the term securitization market on a more frequent basis.
The company also plans to sell 1,666,667 shares of common stock to investors at $7.50 per share. The purchases will occur in two tranches, the first of which closed today and covered 666,667 shares and gross proceeds of $5 million. The second closing is expected to occur in November, 2011 and will cover the remaining 1,000,000 shares for gross proceeds of $7.5 million.