Timbercreek Financial Completes $50 Million Bought Deal Offering of Convertible Debentures
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TORONTO, July 08, 2021 (GLOBE NEWSWIRE) — Timbercreek Financial Corp. (TSX: TF) (“Timbercreek Financial” or the “Company”) is pleased to report that it has completed its previously announced bought deal offering of $50 million aggregate principal amount of 5.25% convertible unsecured subordinated debentures of the Company due July 31, 2028 (the “Debentures”) with a syndicate of underwriters co-led by National Bank Financial Inc. and TD Securities Inc. and including RBC Dominion Securities Inc., CIBC World Markets Inc., Raymond James Ltd., BMO Nesbitt Burns Inc., Scotia Capital Inc., Stifel Nicolaus Canada Inc., Canaccord Genuity Corp., iA Private Wealth Inc. and Manulife Securities Incorporated (collectively, the “Underwriters”). The Company has also granted the Underwriters an over-allotment option to purchase up to an additional $5 million aggregate principal amount of Debentures exercisable in whole or in part at any time for a period of up to 30 days following today’s closing of the offering.
The Debentures will trade on the Toronto Stock Exchange under the symbol “TF.DB.D”.
The Company intends to use the net proceeds of the offering to repay amounts owing under its secured revolving credit facility, and to subsequently draw on the credit facility for the purpose of redeeming its 5.45% convertible unsecured debentures due March 31, 2022.
The Debentures will mature on July 31, 2028 and will accrue interest at the rate of 5.25% per annum payable semi-annually in arrears on January 31 and July 31 of each year, commencing January 31, 2022. At the holder’s option, the Debentures may be converted into common shares of the Company at any time prior to the close of business on the earlier of the business day immediately preceding the maturity date and the business day immediately preceding the date (if any) fixed for redemption of the Debentures. The conversion price will be $11.40 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 accordingly may not be offered, sold or delivered, directly or indirectly within the United States, its possessions and other areas subject to its jurisdiction or to, or for the account or for the benefit of, a U.S. person, except where an exemption from registration is available. This news release is for information 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.
About Timbercreek Financial
Timbercreek Financial is a leading non-bank, commercial real estate lender providing shorter-duration, structured financing solutions to commercial real estate investors. Our sophisticated, service-oriented approach allows us to meet the needs of borrowers, including faster execution and more flexible terms that are 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 strong risk-adjusted returns for investors.
This news release contains forward-looking statements about Timbercreek Financial, including, but not limited to, the proposed use of proceeds from the offering. Forward-looking statements are typically identified by words such as “expect”, “anticipate”, “believe”, “foresee”, “could”, “intend”, “plan”, “seek”, “strive”, “will”, “may”, “potential” and “should” and similar expressions concerning matters that are not historical facts. By their nature, forward looking statements reflect the Company’s current views, beliefs, assumptions and intentions, and are subject to certain risks and uncertainties, known and unknown, including, without limitation, 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 to nor assumes any obligation to update these forward-looking statements whether as a result of new information, plans, events or otherwise, unless required by law.