Toronto Stock Exchange: MTG
TORONTO, June 7, 2012 /CNW/ - Timbercreek Senior Mortgage Investment
Corporation (the "Company") is pleased to announce that it has filed an
amended and restated preliminary prospectus with the securities
regulatory authorities in each of the provinces and territories of
Canada, other than Quebec. A copy of the amended and restated
preliminary prospectus will be available on SEDAR (www.sedar.com).
The amended and restated preliminary prospectus qualifies the
distribution (the "Offering") of up to $100 million Class A Shares
("Class A Shares") of the Company at a price of $10 per Class A Share.
The Company proposes to offer, concurrently with the Offering,
subscription receipts (the "Subscription Receipts"), on a private
placement basis, each of which will represent the right to receive
Class A Shares, on the terms and conditions described therein.
Accordingly, it is intended that the final prospectus of the Company
will also qualify the issuance of Class A Shares by the Company upon
the Subscription Receipts being exchanged for Class A Shares in
accordance with the terms thereof. The outstanding Class A Shares are
listed and posted for trading on the Toronto Stock Exchange under the
A syndicate of agents co-led by Raymond James Ltd., TD Securities Inc.
and CIBC and including BMO Capital Markets, GMP Securities L.P., RBC
Dominion Securities Inc., National Bank Financial Inc., Scotiabank,
Manulife Securities Incorporated, Canaccord Genuity Corp. and Macquarie
Capital Markets Canada Ltd. (collectively, the "Agents") have commenced
marketing of the Offering.
Prospective purchasers may subscribe for such Class A Shares through one
of the Agents.
Net proceeds from the Offering will be used to acquire and manage a
diversified portfolio made up of first mortgages with customized terms
(the "Customized First Mortgages") that are secured by primarily
residential (including multi-residential) real estate as well as
office, retail and industrial properties, located primarily in large
urban markets and their surrounding areas.
The investment objective of the Company is, with a primary focus on
capital preservation, to acquire and maintain a diversified portfolio
of Customized First Mortgages in order to permit the Company to pay
monthly distributions to its shareholders. The Company will be managed
by Timbercreek Asset Management Ltd. (the "Manager"). The Manager will
also act as portfolio adviser for the Company and is an investment
For the period ending January 31, 2013, the Manager is currently
targeting an aggregate annualized yield of approximately 6%, net of all
fees and expenses of the Company. Thereafter, in the long-term, the
Manager is targeting an aggregate annual yield (net of all fees and
expenses of the Company) equal to the then current yield to maturity on
the two-year Government of Canada bond yield plus 350 basis points.
This press release shall not constitute an offer to sell or the
solicitation of an offer to buy securities of the Company in the United
States, nor shall there be any sale of the securities of the Company in
any jurisdiction in which such offer, solicitation or sale would be
unlawful. The securities described herein have not been, and will not
be, registered under the United States Securities Act of 1933, as
amended (the "1933 Act"), or any state securities laws and may not be
offered or sold in the United States absent registration or an
applicable exemption from the registration requirements of the 1933 Act
and applicable state securities laws.
This press release contains forward-looking statements. There can be no
assurance that forward-looking statements will prove to be accurate, as
actual results, performance and future events could differ materially
from those anticipated in such statements. Accordingly, readers should
not place undue reliance on forward-looking statements.
The amended and restated preliminary prospectus contains important
information relating to these securities. The amended and restated
preliminary prospectus is still subject to completion or amendment.
Copies of the amended and restated preliminary prospectus may be
obtained from any of the Agents named above. There will be no sale or
acceptance of an offer to buy securities until a receipt for the final
prospectus has been issued.
SOURCE Timbercreek Senior Mortgage Investment
For further information:
Timbercreek Asset Management Ltd.
Vice President, Investor Relations