Toronto Stock Exchange: MTG
TORONTO, Oct. 17, 2013 /CNW/ - Timbercreek Senior Mortgage Investment
Corporation (the "Company") (TSX: MTG) is pleased to announce that its
board of directors (the "Board") has declared a monthly dividend of
$0.050 per class A share ("Class A Shares"), $0.054 per class B share
("Class B Shares"), $0.054 per class I share ("Class I Shares"), and
$0.052 per class J share ("Class J Shares") of the Company to be paid
on November 15, 2013 to holders of Class A, Class B, Class I and Class
J Shares of record on October 31, 2013.
Update on Corporate Transition
As a result of the favourable shareholder vote on September 12, 2013,
the Company formally amended its articles of incorporation to effect
the transition to a non-investment fund reporting issuer on September
13, 2013. This transition means, among other things, the Company is
now subject to public company reporting requirements (the "Public
Company Regime") including the requirement to publish quarterly
financial statements and management discussion and analysis ("MD&A").
The Company anticipates filing its interim financial statements and
MD&A for the period ending September 30th (the "Q3 Financials") on or
about November 14, 2013.
There are two aspects of the corporate transition that remain
1) Special One-Time Redemption: As described in the management information circular distributed in
connection with the transition, a special one-time redemption for
shareholders will take place on October 31, 2013 (the "Redemption
Date") with payment being made on or before November 30, 2013. The
Company is currently assessing the total costs of the restructuring in
order to determine the October 31, 2013 net redemption value per share
(the "NRV Per Share") that will be used to calculate proceeds of the
redemption. Those exercising their redemption rights will be eligible
for the October distribution.
2) Exchange to Common Shares: On November 30, 2013 (the "Exchange Date"), all remaining Class A
Shares, Class B Shares, Class I Shares and Class J Shares will be
exchanged for new Common Shares at a conversion ratio of 1 to 1 for
each Class A Share and for each of the Class B Shares, Class I Shares
and Class J Shares at a ratio equal to the quotient obtained by
dividing the NRV per share of that Class by the NRV per share of the
Class A Shares on October 31, 2013.
Having completed its transition to the Public Company Regime, management
and the Board are able to take a longer-term approach to creating value
for investors. This approach will continue to focus on preserving
capital while providing stable monthly distributions to investors of
the cash flow (interest and fees) generated from its investments in a
diversified portfolio of customized first mortgages secured primarily
by income producing properties in urban areas of Canada. The Company
intends to continue employing conservative loan selection and
underwriting policies, effective portfolio diversification and risk
mitigation measures, and strong governance and management strategies.
The Company believes market fundamentals for those aspects of
commercial real estate in Canada in which it invests remain strong and
there continues to be healthy demand for customized, shorter-term loans
from high-quality borrowers. A full update on the performance of the
Company will be provided with the Q3 Financials that are expected to be
filed on or about November 14, 2013.
The Company's Class A Shares are currently priced to yield approximately
7% in the secondary market, which management feels does not accurately
reflect the risk of the underlying portfolio. Therefore, the Company
will continue to explore the benefits of utilizing its normal course
issuer bid, which permits the company to purchase for cancelation up to
10% of the Company's public float (as of June 6, 2013) through until
June 9, 2014 (the "NCIB") against other potential options for investing
available cash. The NCIB is subject to a "blackout period" as provided
for in the Company's insider trading policy adopted in connection with
the corporate transition, for periods beginning on the last day of each
fiscal quarter until two days following the release of the Company's
quarterly and annual financial statements.
About Timbercreek Senior Mortgage Investment Corporation
The Company provides investors with an opportunity to receive attractive
yields by investing indirectly, through holding shares of the Company,
in mortgage loan investments selected and determined to be high quality
by its manager, Timbercreek Asset Management Ltd. The investment
objective of the Company is, with a primary focus on capital
preservation, to acquire and maintain a diversified portfolio of first
mortgage loan investments that generates attractive, stable returns in
order to permit the Company to pay monthly distributions to its
For more information about the Company, and its Manager, Timbercreek
Asset Management, please visit www.timbercreek.com.
SOURCE: Timbercreek Senior Mortgage Investment Corporation
For further information:
Timbercreek Asset Management Ltd.