News
Timbercreek Financial Completes Convertible Debenture Offer for $46 Million
Timbercreek Financial
THIS NEWS RELEASE IS NOT FOR DISTRIBUTION TO US NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.
TORONTO, May 28, 2024 (GLOBE NEWSWIRE) – Timbercreek Financial Corp.Timber Creek” or the “Company”) is pleased to announce that it has completed its previously announced tender offer of $40 million aggregate principal amount of 7.50% unsecured convertible subordinated debentures of the Company due June 30, 2029 (the “Debentures”) with a syndicate of underwriters co-led by National Bank Financial Inc. and including CIBC World Markets Inc., RBC Dominion Securities Inc., Canaccord Genuity Corp., Raymond James Ltd., BMO Nesbitt Burns Inc., Scotia Capital Inc. , iA Private Wealth Inc., ATB Securities Inc. and Manulife Wealth Inc.Subscribers”). The Underwriters exercised in full the over-allotment option to purchase up to an additional $6 million aggregate principal amount of Debentures, resulting in the Company’s issuance of $46 million aggregate principal amount of Debentures.
The Debentures will be traded on the Toronto Stock Exchange under the symbol “TF.DB.F”.
The Company intends to use the net proceeds from the offering to pay amounts owed under its secured revolving credit facility. The Company intends to subsequently utilize the credit line for the purpose of redeeming its 5.30% convertible unsecured subordinated debentures due June 30, 2024, as well as for general corporate purposes.
The Debentures will mature on June 30, 2029 and will bear interest at the rate of 7.50% per year, payable semi-annually, on June 30 and December 31 of each year, starting on December 31, 2024. At the discretion of the holder, the Debentures may be converted into common shares of the Company at any time before the close of business, whichever occurs first between the business day immediately preceding the maturity date and the business day immediately preceding the date (if any) fixed for the redemption of the Debentures. The conversion price will be $8.50 for each common share, subject to adjustment in certain circumstances.
The securities described herein have not been and will not be registered under the United States Securities Act of 1933 and, therefore, may not be offered, sold or delivered, directly or indirectly, in the United States, on its property or in other areas subject to to its jurisdiction or to , or for the account or benefit of a U.S. person, except where an exemption from registration is available. This press release is for informational purposes only and does not constitute an offer to sell or a solicitation of an offer to buy any securities of the Company in any jurisdiction.
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About Timbercreek Financial
Timbercreek is a leading non-bank commercial real estate lender offering short-term structured financing solutions to commercial real estate investors. Our sophisticated, service-oriented approach allows us to meet borrowers’ needs, including faster execution and more flexible terms not typically provided by Canadian financial institutions. By employing thorough underwriting, active management and strong governance, we are able to meet these needs while targeting solid risk-adjusted returns for investors.
Disclaimers
This press release contains forward-looking statements within the meaning of that phrase under Canadian securities laws, including, but not limited to, the proposed use of proceeds from the offering. When used in this press release, the words “may”, “would”, “should”, “could”, “will”, “intend”, “plan”, “anticipate”, “believe”, “estimate”, “ expect”, “target” and similar expressions may be used to identify forward-looking statements. By their nature, forward-looking statements reflect the Company’s current views, beliefs, assumptions and intentions and are subject to certain known and unknown risks and uncertainties, including, without limitation, those risks disclosed in the Company’s public filings. Many factors could cause actual results, performance or achievements to be materially different from any future results, performance or achievements that may be expressed or implied by these forward-looking statements. The Company does not intend or undertake any obligation to update these forward-looking statements, whether as a result of new information, plans, events or otherwise, unless required by law.
CONTACT:
Timbercreek Financial
Tracy Johnston
CFO
tjohnston@timbercreek.com
www.timbercreekfinancial.com
