New stock arbitrage— First National Financial Corp.

First National Financial Corp is the parent company of First National Financial LP, a Canadian originator, underwriter, and servicer of predominantly prime residential and commercial mortgages. The company controls its First National Mortgage Investment Fund, which manages economic exposure to a diversified portfolio of primarily commercial mezzanine mortgages. Most mortgages originated by First National are funded either by placement with institutional investors or through securitization conduits, in each case with retained servicing. In general, originations are allocated from one funding source to another depending on market conditions and strategic considerations related to maintaining diversified funding sources.

First National Financial Corporation announced on last Monday that First National Securities Corporation and 801420 Ontario Limited have entered into an agreement with a syndicate of underwriters led by National Bank Financial Inc. and TD Securities Inc. for a secondary offering, on a bought deal basis, of 1,180,000 common shares of First National at a price of $42.40 per common share, for aggregate gross proceeds to the Selling Shareholders of approximately $50.0 million. Closing is expected to occur on or about December 13, 2019.