Timbercreek Senior Mortgage Investment Corporation Raises $153.8 Million in Public Offering and Private Placement

Jul 04, 2012, 09:00 ET from Timbercreek Senior Mortgage Investment Corporation

TORONTO, July 4, 2012 /CNW/ - Timbercreek Senior Mortgage Investment Corporation (the "Company") is pleased to announce that it has completed its public offering of 14,950,000 class A shares (the "Offering"), which includes the exercise by the Agents (as defined below) of an over-allotment option of 15%, for aggregate gross proceeds of $149,500,000.  The class A shares were offered to the public by a syndicate of agents co-led by Raymond James Ltd., TD Securities Inc. and CIBC and including BMO Nesbitt Burns Inc., GMP Securities L.P., RBC Dominion Securities Inc., National Bank Financial Inc., Scotiabank, Manulife Securities Incorporated, Canaccord Genuity Corp. and Macquarie Capital Markets Canada Ltd. (the "Agents").

Under a non-brokered private placement, the Company has also issued 430,000 subscription receipts (the "Subscription Receipts") at $10.00 per Subscription Receipt for gross proceeds of $4,300,000.  Holders of Subscription Receipts will receive 1.0402 class A shares of the Company for each Subscription Receipt held, effective at 5:00 p.m. (Toronto time), July 4, 2012.  Holders of Subscription Receipts need not take any action in order to receive the class A shares to which they are entitled.

Net proceeds from the Offering will be used to acquire and manage a diversified portfolio made up of first mortgages with customized terms (the "Customized First Mortgages") that are secured by primarily residential (including multi-residential) real estate as well as office, retail and industrial properties, located primarily in large urban markets and their surrounding areas.

The investment objective of the Company is, with a primary focus on capital preservation, to acquire and maintain a diversified portfolio of Customized First Mortgages in order to permit the Company to pay monthly distributions to its shareholders.  The Company is managed by Timbercreek Asset Management Ltd. (the "Manager"). The Manager also acts as portfolio adviser for the Company.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy securities of the Company in the United States, nor shall there be any sale of the securities of the Company in any jurisdiction in which such offer, solicitation or sale would be unlawful.  The securities described herein have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the "1933 Act"), or any state securities laws and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the 1933 Act and applicable state securities laws.

Certain statements included in this news release constitute forward-looking statements, including, but not limited to, those identified by the expressions "expect", "intend", "will" and similar expressions to the extent they relate to the Company. The forward-looking statements are not historical facts but reflect the Manager's current expectations regarding future results or events. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations. Although the Manager believes that the assumptions inherent in the forward-looking statements are reasonable, forward-looking statements are not guarantees of future performance and, accordingly, readers are cautioned not to place undue reliance on such statements due to the inherent uncertainty therein. The Manager undertakes no obligation to update publicly or otherwise revise any forward-looking statement or information whether as a result of new information, future events or other factors which affect this information, except as required by law.

SOURCE Timbercreek Senior Mortgage Investment Corporation