TORONTO, July 7 /CNW/ - Timbercreek Mortgage Investment Corporation (the
"Fund") announced today the completion of it's initial public offering. Upon
closing, the Fund issued 2,433,186 subscription receipts (the "Subscription
Receipts") at $10.00 per Subscription Receipt for gross proceeds of
$24,331,860 (the "Offering"). The net proceeds of the Offering will be used to
fund the acquisition of a portfolio of mortgage loan investments that are
currently funded through non-committed funding facilities (the "Warehouse
Portfolio"), with the balance used for certain other authorized investments.
The Warehouse Portfolio along with the acquisition of the initial portfolio of
mortgages (the "Seed Portfolio") funded by Timbercreek Mortgage Investment
Fund ("TMIF") and approved for sale to the Fund by the unitholders of TMIF on
July 2, 2008 in exchange for Class B Share ("Class B Shares") of the Fund
together form the initial portfolio acquisitions (the "Initial Portfolio
The agents for the Offering have been granted an over-allotment option
exercisable for 30 days following the closing of the Offering, to acquire
subscription receipts or Class A Shares equal to up to 15% of the number of
subscription receipts sold at the closing of this Offering. Upon completion of
the Initial Portfolio Acquisitions and the exchange of Subscription Receipts
for Class A Shares, the Class A Shares will trade on the TSX under the symbol
The offering was effected by a syndicate agents, co-led by Manulife
Securities Incorporated (formerly Berkshire Securities Inc.) and Raymond James
Ltd. and included Dundee Securities Corporation, Newport Securities L.P.,
Burgeonvest Securities Limited and IPC Securities Corporation.
Each Subscription Receipt represents the right to receive one Class A
Share of the Fund on the closing of the Initial Portfolio Acquisitions. The
gross proceeds of the offering of Subscription Receipts have been deposited in
escrow pending closing of the Initial Portfolio Acquisitions. If the Initial
Portfolio Acquisitions closes on or before August 4, 2008, the net proceeds
will be released to the Fund and used to pay for the purchase price of the
Warehouse Portfolio. If the Initial Portfolio Acquisitions fail to close by
August 4, 2008, or the Initial Portfolio Acquisitions are terminated at any
earlier time, the Fund will return to holders of Subscription Receipts the
issue price. The Initial Portfolio Acquisitions are expected to close on or
about July 7, 2008.
The Fund, which is incorporated under the laws of the Province of Ontario
and which will be managed by Timbercreek Asset Management Inc. (the "Fund
Manager"), provides investors with an opportunity to receive attractive yields
by investing indirectly, through holding shares of the Fund, in mortgage loan
investments selected and determined to be high quality by the Fund Manager.
For the 12-month period ending December 31, 2008, the Fund Manager is
targeting an annualized yield of approximately 9%, net of all fees and
expenses of the Fund and based on the issue price of $10 per Class A Share.
Thereafter, in the long-term, the Fund Manager is targeting an aggregate
annual yield (net of all fees and expenses of the Fund) equal to the then
current yield to maturity on the two-year Government of Canada bond yield (the
"2-Yr GOC Yield") plus 550 basis points. For the year ended December 31, 2007,
the average 2-Yr GOC yield was 4.19%.
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.
For further information:
For further information: Timbercreek Asset Management Inc., Carrie
Morris, Director, Investor Relations, (416) 306-9967 x250,