Tricon Capital Establishes a US$261 million Co-Investment in Tricon IX and Closes $242 million Common Share Bought Deal Offering

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TORONTO, Aug. 13, 2013 /CNW/ - Tricon Capital Group (TSX:TCN) ("Tricon" or the "Company") closed today its previously announced co-investment in Tricon IX (the "Transaction").  Pursuant to the Transaction, the Company acquired a 68.4% limited partnership interest in Tricon IX, a dedicated U.S. residential development fund managed by the Company with total committed capital of approximately US$332 million.  The net purchase price for the Transaction was approximately US$261 million, which was financed by a public offering of Tricon common shares ("Common Shares"), an approximately US$54 million private placement of Common Shares to several selling limited partners of Tricon IX and draws under a new revolving credit facility.

The Company is also pleased to announce that it has completed its previously announced offering of 39,272,500 Common Shares at a price of $6.15 per Common Share, which amount included 5,122,500 Common Shares issued to cover over-allotments pursuant to the exercise in full of the underwriters' over-allotment option. The offering of Common Shares was completed on a bought deal basis and was underwritten by a syndicate of underwriters co-led by GMP Securities L.P. and RBC Capital Markets and including BMO Capital Markets, CIBC World Markets Inc., TD Securities Inc., Canaccord Genuity Corp., National Bank Financial Inc., Paradigm Capital Inc. and Raymond James Ltd.

As previously announced, the net proceeds to the Company from the offering were primarily used to fund a portion of the purchase price for the Transaction, as well as the Company's transaction expenses, as described in detail in the Company's (final) short form prospectus dated August 6, 2013 (the "Prospectus").  The Prospectus is available on SEDAR at www.sedar.com.

JPMorgan, RBC Capital Markets and GMP Securities L.P. acted as financial advisors to Tricon in connection with the Transaction.  Goodmans LLP and Goulston & Storrs PC acted as Canadian and U.S. counsel, respectively, to Tricon.

This press release is not an offer or a solicitation of an offer of securities for sale in the United States. The Common Shares have not been and will not be registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from registration.

About Tricon Capital Group Inc.

Founded in 1988, Tricon is one of North America's leading residential real estate investment companies with approximately $1.4 billion of assets under management and a portfolio of over 2,500 U.S. single-family rental homes. Tricon provides financing to local operators or developers in select markets in the United States and Canada, with a primary focus on for-sale housing in growing markets. Since inception, Tricon has invested in approximately 150 transactions for development projects valued at more than $11 billion.  More information about Tricon is available at www.triconcapital.com.

Forward-Looking Statements

This press release may contain forward-looking statements relating to expected future events and financial and operating results and projections of the Company, including statements regarding future plans, objectives or economic performance that involve risks and uncertainties. Forward-looking information and statements are based on management's expectations, intentions and assumptions. If unknown risks arise, or if any of the assumptions underlying the forward-looking statements prove incorrect, actual results may differ materially from management expectations as projected in such forward-looking statements. Examples of such risks include, but are not limited to, the risks disclosed in the Prospectus and the Company's annual information form for the year ended December 31, 2012 dated March 12, 2013, and the risks described in the Company's continuous disclosure materials from time-to-time, as available on SEDAR at www.sedar.com. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, unless required by applicable law

SOURCE: Tricon Capital Group Inc.

Gary Berman
President
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Adrian Rocca
Vice President
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June Alikhan
Chief Financial Officer
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