Timbercreek Senior Mortgage Investment Corporation Raises $60.4 Million in Public Offering

TORONTO, Jan. 8, 2013 /CNW/ - Timbercreek Senior Mortgage Investment Corporation (the "Company") is pleased to announce that it has completed its public offering (the "Offering") of 5,916,446 Class A shares (the "Class A Shares") and 220,559 Class B shares (the "Class B Shares", and together with the Class A Shares, the "Shares") of the Company, at a price of $9.85 per Class A Share and $10.00 per Class B Share, for total gross proceeds of $60,482,583.10.  The Class B Shares are designated for fee-based accounts with a registered dealer or institutional investors and will not be listed on a stock exchange, but are convertible into Class A shares of the Company.  The outstanding Class A shares of the Company are listed and posted for trading on the Toronto Stock Exchange under the symbol "MTG".

The Shares were offered to the public by a syndicate of agents led by CIBC, Raymond James Ltd., RBC Capital Markets and TD Securities Inc. and including GMP Securities L.P., National Bank Financial Inc., BMO Capital Markets, Scotiabank, Macquarie Capital Markets Canada Ltd., Manulife Securities Incorporated and Canaccord Genuity Corp.

The Company will use a substantial amount of the net proceeds of the Offering to pay down amounts owed under its credit facility.  The Company intends to use substantially all of the remaining balance of the net proceeds to fund investments in, and other costs associated with, first mortgages with customized terms ("Customized First Mortgages") from time to time in a manner consistent with the investment objectives and the investment strategies of the Company, with any remaining balance of the net proceeds being used by the Company for general working capital expenditures.

The investment objectives of the Company are, with a primary focus on capital preservation, to acquire and maintain a diversified portfolio of Customized First Mortgages that generate attractive, stable returns 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 and is an investment management company.

Although the long-term targeted aggregate annual yield (net of all fees and expenses of the Company) of the Manager is the two-year Government of Canada bond yield plus 350 basis points, for the period ending June 30, 2013, the Manager is targeting to deliver a return consistent with the previous nine months cash distributions, which would result in an annualized yield of approximately 6% per Class A Share (based on an issue price of $10.00 per Class A Share), net of fees and expenses of 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 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.

SOURCE: Timbercreek Senior Mortgage Investment Corporation

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