TORONTO, Jan. 8, 2013 /CNW/ - Timbercreek Senior Mortgage Investment
Corporation (the "Company") is pleased to announce that it has
completed its public offering (the "Offering") of 5,916,446 Class A
shares (the "Class A Shares") and 220,559 Class B shares (the "Class B
Shares", and together with the Class A Shares, the "Shares") of the
Company, at a price of $9.85 per Class A Share and $10.00 per Class B
Share, for total gross proceeds of $60,482,583.10. The Class B Shares
are designated for fee-based accounts with a registered dealer or
institutional investors and will not be listed on a stock exchange, but
are convertible into Class A shares of the Company. The outstanding
Class A shares of the Company are listed and posted for trading on the
Toronto Stock Exchange under the symbol "MTG".
The Shares were offered to the public by a syndicate of agents led by
CIBC, Raymond James Ltd., RBC Capital Markets and TD Securities Inc.
and including GMP Securities L.P., National Bank Financial Inc., BMO
Capital Markets, Scotiabank, Macquarie Capital Markets Canada Ltd.,
Manulife Securities Incorporated and Canaccord Genuity Corp.
The Company will use a substantial amount of the net proceeds of the
Offering to pay down amounts owed under its credit facility. The
Company intends to use substantially all of the remaining balance of
the net proceeds to fund investments in, and other costs associated
with, first mortgages with customized terms ("Customized First
Mortgages") from time to time in a manner consistent with the
investment objectives and the investment strategies of the Company,
with any remaining balance of the net proceeds being used by the
Company for general working capital expenditures.
The investment objectives of the Company are, with a primary focus on
capital preservation, to acquire and maintain a diversified portfolio
of Customized First Mortgages that generate attractive, stable returns
in order to permit the Company to pay monthly distributions to its
shareholders. The Company is managed by Timbercreek Asset Management
Ltd. (the "Manager"). The Manager also acts as portfolio adviser for
the Company and is an investment management company.
Although the long-term targeted aggregate annual yield (net of all fees
and expenses of the Company) of the Manager is the two-year Government
of Canada bond yield plus 350 basis points, for the period ending June
30, 2013, the Manager is targeting to deliver a return consistent with
the previous nine months cash distributions, which would result in an
annualized yield of approximately 6% per Class A Share (based on an
issue price of $10.00 per Class A Share), net of fees and expenses of
This press release shall not constitute an offer to sell or the
solicitation of an offer to buy 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.
SOURCE: Timbercreek Senior Mortgage Investment Corporation
For further information:
Timbercreek Asset Management Ltd.
Vice President, Investor Relations