Delavaco Residential Properties Corp. has over 96% support in favour of the Senior Secured Note Maturity Date Extension
28 Jun, 2016, 22:54 ET
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*All amounts stated in USD, unless otherwise stated.
TORONTO, June 28, 2016 /CNW/ - Delavaco Residential Properties Corp. ("Delavaco" or the "Company") (TSXV: DVO.U) is pleased announce that 96.2% or approximately $11.8 million of the $12.3 million of outstanding 7.5% Senior Secured Notes ("SSN") due June 30, 2016 have tendered to the maturity date extension from June 30, 2016 to December 31, 2017 (the "Maturity Date Extension").
As previously press released, the Company had sent out notices to all SSN holders to request the Maturity Date Extension. This press release is to remind all SSN holders that they should have received the Notice of Maturity Date Extension along with cover letter in the mail. If they haven't, please contact either your broker who is holding your interest in the SSN or the Company at (416) 635-0221 ext. 235. We are requesting SSN holders return this Notice to the Company's attention no later than June 30, 2016.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS: Certain information in this news release constitutes forward-looking statements under applicable securities law. Any statements that are contained in this news release that are not statements of historical fact may be deemed to be forward-looking statements. Forward-looking statements are often identified by terms such as "may", "should", "anticipate", "expect", "intend" and similar expressions. Forward-looking statements in this news release include, but are not limited to, statements regarding the arrangements described above with Firm Capital, including the Asset Management Agreement, the Maturity Date Extension, the possible termination of the Asset Management Agreement, the proposed name change, the proposed Rights Offering (and the proposed use of the proceeds thereof), the proposed share consolidation and the proposed disposition of homes in South Florida and Atlanta, which may not be completed within the estimated time frames specified, and as described, above or at all. In the event that such steps are not completed to the satisfaction of Firm Capital, the rebranding, Board and senior management restructuring and new business focus described above will likely be subject to amendment or may not proceed, which could have a material adverse effect upon the Company. Failure to complete the steps or any delays in their implementation may have a material adverse affect upon the business of the Company and its market value. There is no assurance that the Company will be able to complete the disposition of the single property disposition portfolio at anticipated values or at all or that market conditions will support the debt and equity raises contemplated by the Company. Failure to achieve these objectives, including failure to receive all approvals in connection with the Maturity Date Extension, will have a material and adverse effect upon the Company. There is no assurance that the Maturity Date Extension, the proposed name change, proposed share consolidation, proposed reconstitution of the Board and senior management and the proposed disposition of homes in South Florida and Atlanta will occur as described herein or at all. There is no assurance that the proposed Rights Offering will occur as described herein or at all. There is no assurance that the implementation of the steps, even if completed as described above, will increase the market value of the Company's securities, which is subject to numerous factors beyond the Company's control. Forward-looking statements necessarily involve known and unknown risks, including, without limitation, risks associated with general economic conditions; adverse factors affecting the U.S. real estate market generally or those specific markets in which the Company holds properties; volatility of real estate prices; inability to complete the single family property disposition program or debt restructuring in a timely manner; inability to access sufficient capital from internal and external sources, and/or inability to access sufficient capital on favourable terms; industry and government regulation; changes in legislation, income tax and regulatory matters; the ability of Delavaco to implement its business strategies; competition; currency and interest rate fluctuations and other risks. Readers are cautioned that the foregoing list is not exhaustive. Readers are further cautioned not to place undue reliance on forward-looking statements as there can be no assurance that the plans, intentions or expectations upon which they are placed will occur. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated. Forward-looking statements contained in this news release are expressly qualified by this cautionary statement. Certain financial information presented in this press release reflect certain non-International Financial Reporting Standards ("IFRS") financial measures, which include NOI, FFO and AFFO. These measures are commonly used by real estate investment companies as useful metrics for measuring performance, however, they do not have standardized meaning prescribed by IFRS and are not necessarily comparable to similar measures presented by other real estate investment companies. Delavaco believes that FFO and AFFO are important measures of operating performance. The IFRS measurement most directly comparable to AFFO is net income. These terms are defined in Delavaco's Management's Discussion and Analysis for the Quarter Ended March 31, 2016 filed on www.sedar.com. Neither the Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Additional information about Delavaco Residential Properties Corp. is available at www.delavacoproperties.com or www.sedar.com.
SOURCE Delavaco Residential Properties Corp
For further information:
Michael Galloro, Chief Financial Officer, [email protected]
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