/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/
TORONTO, April 22, 2013 /CNW/ - Trez Capital Senior Mortgage Investment Corporation (TZS - TSX) ("Trez" or "the Corporation") announced the implementation of a distribution reinvestment plan (the "Plan"). The Plan provides eligible holders of class A shares of the Corporation ("Class A Shares") with a convenient means to purchase additional Class A Shares by reinvesting their cash distributions at a potential discount to net asset value or the current market price.
Shares for the reinvestment of distributions will be acquired in the open market at prevailing market rates or, if lower than the current market price, issued from treasury at the greater of net asset value per share and 95 percent of the average market price. "Average market price" is defined in the Plan to be the volume weighted average trading price of Class A Shares on the Toronto Stock Exchange during the 10 trading days ending on the third business day immediately prior to the distribution payment date on which at least a board lot of Class A Shares is traded. Class A Shares acquired under the Plan will be automatically enrolled in the Plan. Beneficial shareholders who hold their Class A Shares through a broker, financial institution or other nominee must enroll for distribution reinvestment through their nominee holder.
The Plan may be obtained on the Corporation's website at www.trezcapitalseniormic.com.
The Company also announced today that its board of directors has declared its monthly distribution of $0.0416 per Class A share of the Company. The distribution will be paid on May 15, 2013 to holders of Class A shares of record on April 30, 2013. As of April 22, 2013, there were 8,915,000 Class A shares outstanding. The amount of the monthly distributions is equivalent to approximately $0.50 per Class A Share per annum. This represents an annual cash distribution of 5.0% based on the $10 issue price of the Class A Shares.
About the Corporation
Trez's objective is to acquire and maintain a diversified portfolio of first mortgages in Canada that preserves capital and generates attractive returns in order to pay monthly distributions to its shareholders. The Corporation pursues its investment objectives through prudent investments in first mortgages to qualified real estate investors and developers, focusing primarily on short-term bridge financing needs not currently serviced by traditional real estate lenders. Trez Capital Fund Management Limited Partnership is the manager of and portfolio advisor to the Corporation.
This press release contains forward-looking statements that involve a number of risks and uncertainties. Among the important factors that could cause actual results to differ materially from those indicated by such forward-looking statements are market and general economic conditions and the risk factors detailed from time to time in the Corporation's periodic reports filed with the Canadian securities regulatory authorities and on SEDAR at www.sedar.com. Readers are cautioned not to rely on forward-looking statements. Except as required under continuous disclosure obligations, the Corporation undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
SOURCE: Trez Capital Senior Mortgage Investment Corporation
For further information:
Mr. Michael J.R. Nisker
President and Chief Executive Officer
Trez Capital Senior Mortgage Investment Corporation
Tel: (416) 350-1299
Mr. Chris Twells
Trez Capital Fund Management Limited Partnership
Tel: (604) 647-5515