Shares issued: Class A - 16,764,919 Class B - 3,149,839
HALIFAX, May 5 /CNW/ - (TSX: HII.A & HII.B and NYSE Euronext Amsterdam:
HII) - Mr. Richard Homburg, Chairman and CEO of Homburg Invest Inc. ("HII" or
"Homburg Invest") is pleased to announce that Homburg Invest has received
final approval from the Dutch regulator, The Netherlands Authority for the
Financial Markets (Autoriteit Financiele Markten) of a Supplement related to
the Prospectus of the Homburg Capital Securities A in which Homburg invest is
guaranteeing the holders of the Homburg Capital Securities A the right to cash
for all quarterly interest payments for up to the first two years after
initial issuance. On February 26, 2009, Homburg Invest announced that it had
received Dutch Regulatory Approval of its new Homburg Capital Securities A
("HCSA"). The HCSA have a 99 year life and bear interest at 9.5% per annum.
Homburg Invest may at its sole option redeem the HCSA in whole or in part
after 5 years, and thereafter at any of the quarterly interest payment dates.
Homburg Invest has the option to settle any and all of the quarterly interest
payments by issuing Class A Preferred shares rather than cash. Each of the
HCSA has a face value of EUR 1,000 and will be sold in a minimum subscription
of 5 securities, or EUR 5,000. The Prospectus related to the HCSA is for a
minimum of 25,000 to a maximum of 75,000 HCSA, for an aggregate principal
amount of EUR 25,000,000 to EUR 75,000,000 (CAD $41,250,000 to CAD
$123,750,000, based on an exchange rate of 1.65).
It was also stated at that same time that Homburg Invest will apply for a
listing of the HCSA on NYSE Euronext Amsterdam before January 31, 2011.
Homburg Invest has now set a target date to apply to obtain listing of the
HCSA on NYSE Euronext Amsterdam before June 30, 2010 subject to the then
prevailing market conditions.
In order to provide holders of HCSA additional liquidity Homburg Invest
is pleased to announce that for the two year period ending March 31, 2011
Homburg Invest will issue put options for any quarterly interest payments made
through the issuance of Class A Preferred shares. These put options will
entitle the holders of the HCSA to immediate redemption of any Class A
Preferred shares they receive up to March 31, 2011. The put options will be
tied to the related HCSA and will only be exercisable within 30 days of the
related quarterly interest payment.
After giving effect to the two year put options and assumptions on the
probability of exercising the early redemption option available to Homburg
Invest, the HCSA will have a debt component of approximately 20% based on the
present value of both the future principal repayment and the two year put
options, and an equity component of approximately 80% based on the future
quarterly interest stream, after the first two years. The entire interest
payments will be an expense for Canadian Corporate Income Tax purposes. The
HCSA will be subordinate to Homburg Invest's existing Homburg Mortgage Bonds
and Homburg Bonds and will rank senior to Homburg Invest's Class A Subordinate
Voting shares and Class B Multiple Voting shares.
Homburg Invest intends to utilize the funds raised to retire existing
debt, strengthen its balance sheet, and for general purposes.
The HCSA is the latest product to be sold by Homburg Invest to the Dutch
market and is a follow up to Homburg Invest's hugely successful Bond program
that has seen Homburg Invest raise approximately CAD $675 million in the last
The Homburg Capital Securities A are not being offered for sale in Canada
and have not been, and will not be, qualified for distribution in Canada by
the filing of a prospectus with any securities regulatory authority or
commission in Canada.
Homburg Invest, with its head office in Halifax, Nova Scotia, is an
international real estate investment and development company that owns a
diversified portfolio of quality real estate, including office, retail,
industrial and residential apartment and townhouse properties in Canada,
Europe and the United States. Homburg Invest also owns land assets for
development in Calgary and Edmonton, Alberta; Montreal, Quebec; and
Charlottetown, Prince Edward Island. In 2007, Homburg Invest completed
significant acquisitions totalling over approximately CAD$ 1.1 billion and as
of December 31, 2008 has assets of over CAD$ 4.0 billion with an approximate
aggregate of 20.2 million square feet of gross leasable area.
This news release may contain statements which by their nature are
forward looking and express Homburg Invest's beliefs, expectations or
intentions regarding future performance, future events or trends. Forward
looking statements are made by Homburg Invest in good faith, given
management's expectations or intentions however, they are subject to market
conditions, acquisitions, occupancy rates, capital requirements, sources of
funds, expense levels, operating performance and other matters. Therefore,
forward looking statements contain assumptions which are subject to various
factors including: unknown risks and uncertainties: general economic
conditions; local market factors; performance of other third parties;
environmental concerns; and interest rates, any of which may cause actual
results to differ from Homburg Invest's good faith beliefs, expectations or
intentions which have been expressed in or may be implied from this news
release. Therefore, forward looking statements are not guarantees of future
performance and are subject to known and unknown risks. Information and
statements in this document, other than historical information, should be
considered forward-looking and reflect management's current views of future
events and financial performance that involve a number of risks and
uncertainties. Factors that could cause actual results to differ materially
include, but are not limited to, the following: general economic conditions
and developments within the real estate industry, competition and the
management of growth. The Toronto Stock Exchange has neither approved nor
disapproved of the information contained herein.
For further information:
For further information: Mr. Richard Homburg, Chairman and CEO, Homburg
Invest Inc., (902) 468-3395; Mr. Richard Stolle, President and COO, Homburg
Invest Inc., 011 31 20 573 3855