Timbercreek Files Preliminary Prospectus for $100,000,000 Offering

TORONTO, May 31, 2012 /CNW/ - Timbercreek Senior Mortgage Investment Corporation (the "Company") announced today that it has filed a preliminary prospectus (the "Preliminary Prospectus") with the securities regulatory authorities in each of the provinces and territories of Canada, other than Quebec.  A copy of the Preliminary Prospectus will be available on SEDAR (www.sedar.com).

The Preliminary Prospectus qualifies the distribution (the "Offering") of up to $100 million of Class A Shares ("Class A Shares") of the Company at a price of $10 per Class A Share. The Company proposes to offer, concurrently with the Offering, subscription receipts (the "Subscription Receipts"), on a private placement basis, each of which will represent the right to receive Class A Shares, on the terms and conditions described therein.  Accordingly, it is intended that the final prospectus of the Company will also qualify the issuance of Class A Shares by the Company upon the Subscription Receipts being exchanged for Class A Shares in accordance with the terms thereof.  The outstanding Class A Shares are listed and posted for trading on the Toronto Stock Exchange under the symbol "MTG".

A syndicate of agents including Raymond James Ltd., TD Securities Inc. and CIBC(the "Agents") will commence marketing of the Offering.

Prospective purchasers may subscribe for such Class A Shares through one of the Agents.

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 will be managed by Timbercreek Asset Management Ltd. (the "Manager"). The Manager will also act as portfolio adviser for the Company and is an investment management company. -

For the period ending January 31, 2013, the Manager is currently targeting an aggregate annualized yield of approximately 6%, net of all fees and expenses of the Company.  Thereafter, in the long-term, the Manager is targeting an aggregate annual yield (net of all fees and expenses of the Company) equal to the then current yield to maturity on the two-year Government of Canada bond yield plus 350 basis points.

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.

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. 

The Preliminary Prospectus contains important information relating to these securities. The Preliminary Prospectus is still subject to completion or amendment. Copies of the Preliminary Prospectus may be obtained from any of the Agents named above. There will be no sale or acceptance of an offer to buy securities until a receipt for the final prospectus has been issued.

Timbercreek Asset Management Ltd.
Carrie Morris
Vice President, Investor Relations
416-306-9967 x250
[email protected]