TORONTO, Jan. 10 /CNW/ - Timbercreek Mortgage Investment Corporation
(the "Fund") is pleased to announce that on January 7, 2011 it filed a
prospectus supplement (the "Prospectus Supplement") to its short form
base shelf prospectus dated December 30, 2009 (the "Base Prospectus")
with the Canadian securities regulatory authorities in each of the
provinces and territories of Canada, other than Quebec. The Prospectus
Supplement qualifies the distribution (the "Offering") of up to $42.5
million of Class A Shares ("Class A Shares") of the Fund at $10 per
Class A Share. A syndicate of agents co-led by Raymond James Ltd. and
BMO Nesbitt Burns Inc., and including CIBC World Markets Inc., TD
Securities Inc., Manulife Securities Incorporated, Scotia Capital Inc.,
GMP Securities L.P., HSBC Securities (Canada) 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. The Fund intends to grow its portfolio of
Mortgage Assets (the "Portfolio") from time to time by filing
additional supplements to the Base Prospectus in order to raise
Timbercreek Asset Management Ltd., (the "Fund Manager") believes that
the optimal size of the Portfolio is approximately $300,000,000, based
upon 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 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 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 Prospectus Supplement and
Base Prospectus contain important detailed information about the Class
A Shares being offered. Copies of the Prospectus Supplement and Base
Prospectus may be obtained from any one of the agents listed above.
Investors should read the Prospectus Supplement and Base Supplement
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 Inc.
Director, Investor Relations