Toronto Stock Exchange: TMC
TORONTO, Sept. 12, 2011 /CNW/ - Timbercreek Mortgage Investment
Corporation (the "Fund") is pleased to announce that it has filed an
amendment (the "Amendment") to the prospectus supplement filed on
August 29, 2011 (the "Prospectus Supplement" and together with the
Amendment are collectively referred to as the "Amended Prospectus
Supplement") and has increased the maximum offering size of its
previously announced offering of Class A Shares from $80,000,000 to
$88,000,000. The Amended Prospectus Supplement and the accompanying
short form base-shelf prospectus dated December 30, 2009, as amended by
amendment no.1 dated August 19, 2011 (the base shelf prospectus and
amendment no. 1 are collectively referred to as the "Base Shelf
Prospectus") constitutes a public offering of Class A Shares of the
Fund ("Class A Shares") in each of the provinces and territories of
Canada, other than Quebec (the "Offering"). The agents for the
Offering have been granted an over-allotment option by the Fund,
exercisable for a period of 30 days from the closing of the Offering,
to purchase additional Class A Shares representing 15% of the number of
Class A Shares sold under the Offering. The Offering is scheduled to
close on September 16, 2011.
A syndicate of agents co-led by Raymond James Ltd. and BMO Capital
Markets, and including CIBC World Markets Inc., RBC Capital Markets,
GMP Securities L.P., Manulife Securities Incorporated, TD Securities
Inc., HSBC Securities (Canada) Inc., Scotia Capital Inc., Macquarie
Capital Markets Canada Ltd., Canaccord Genuity Corp. and M Partners
Inc. (the "Agents") has commenced marketing of the Offering.
The Fund was launched in July 2008 to provide investors an opportunity
to invest indirectly, by holding shares of the Fund, in mortgage loan
investments ("Mortgage Assets") selected and determined to be high
quality by the Fund Manager (as defined below). The Fund intends to
grow its portfolio of Mortgage Assets (the "Portfolio") from time to
time by filing additional supplements to the Base Shelf Prospectus in
order to raise additional capital for the purpose of investing in
additional Mortgage Assets.
Timbercreek Asset Management Ltd., (the "Fund Manager") believes that
the optimal size of the Portfolio is approximately $300,000,000 to
$350,000,000 based upon prevailing market fundamentals such as
aggregate size of the customized lending market, its targeted average
loan size and its analysis of expected competition. This optimal
Portfolio size is intended to provide the Fund with greater
diversification of Mortgage Assets, added mortgage loan funding
capacity and flexibility and to create a larger market for the Class A
Shares while still allowing the Fund Manager to effectively manage the
diversified portfolio of mortgage loans.
The investment objective of the Fund is, with a primary focus on capital
preservation, to acquire and maintain a diversified portfolio of
Mortgage Assets that generates attractive, stable returns in order to
permit the Fund to pay monthly distributions to its shareholders.
The Fund Manager targets an aggregate annualized yield (net of all fees
and expenses of the Fund) equal to the then current yield to maturity
on the 2 year Government of Canada bond yield plus 550 basis points.
Since inception, the Fund has exceeded this targeted yield.
The offering is made by prospectus only. The Amended Prospectus
Supplement and Base Shelf Prospectus contain important detailed
information about the Class A Shares being offered. Copies of the
Amended Prospectus Supplement and Base Shelf Prospectus may be obtained
from any one of the agents listed above. Investors should read the
Amended Prospectus Supplement and Base Shelf Prospectus before making
an investment decision.
This press release does not constitute an offer to sell or the
solicitation of an offer to buy securities of the Fund in the United
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 Mortgage Investment Corporation
For further information:
Timbercreek Asset Management Ltd.
Director, Investor Relations