TORONTO, June 12, 2013 /CNW/ - The Board of Directors of Timbercreek Senior Mortgage Investment Corporation (the "Company") is pleased to announce that the Company will satisfy its reinvestment of dividends for participants in the Dividend Reinvestment Plan (the "Plan") by acquiring shares in the open market rather than by issuing from treasury.
The Company offers a Dividend Reinvestment Plan (the "Plan") to eligible holders of Class A Shares, that provides a convenient means to purchase additional Class A Shares by reinvesting their cash dividends at a potential discount and without having to pay commissions, service charges or brokerage fees. Pursuant to the Plan, and at the discretion of the Board of the Company, Class A Shares for the reinvestment of distributions will be acquired in the open market at prevailing prices or issued from treasury at 95 percent of the average market price (the "Average Market Price") for the ten trading day period ending on the third business day immediately prior to the dividend payment date (the "Trading Period"). In accordance with the provisions of the Plan, in the event that the issue price from treasury would be less than the Net Redemption Value ("NRV") per Class A Share, Class A Shares shall be issued from treasury at a price equal to the NRV per Class A Share.
On May 22, 2013, the Board announced a monthly dividend of $0.05 per Class A share to be paid on the dividend payment date of June 14, 2013 (the "Dividend Payment Date") as well as its intention to issue shares from treasury to satisfy the reinvestment of cash dividends. The Average Market Price over the Trading Period is currently below the NRV per Class A Share, and therefore in accordance with the Plan, the Board has now elected to acquire the Class A Shares on the open market at prevailing market rates in order to distribute a greater number of Class A Shares to Plan participants.
Pursuant to the Plan, shares purchased in the open market may not be purchased at a price that would exceed 115% of the volume weighted average trading price of the Class A Shares during the Trading Period where at least a board lot of Class A Shares is purchased. Further, in the event that the number of Class A Shares available in the market on the dividend payment date is insufficient, the plan agent will issue the remaining shares from treasury at 95% of the Average Market Price, or if such price is less than the NRV per Class A Share, at the NRV per Class A Share.
For more information on the Plan, please visit; http://www.timbercreek.com/funds/timbercreek-senior-mortgage-investment-corporation/dividend-reinvestment-plan
At the close of business on June 11, 2013, the market price of the Class A Shares was $9.10 and the NRV per Class A Share was $9.34.
Timbercreek Senior Mortgage Investment Corporation invests in a diversified portfolio of first mortgage loans in Canada, which are secured primarily by income-producing real estate, as opposed to raw land or projects under development. The Company's investment objective is to preserve capital while generating attractive, stable returns through the interest and fees it generates from its mortgage investments to allow it to pay monthly distributions to its shareholders.
For more information about Timbercreek Senior Mortgage Investment Corporation, please visit; http://www.timbercreek.com/funds/timbercreek-senior-mortgage-investment-corporation/overview
SOURCE: Timbercreek Senior Mortgage Investment Corporation
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