SOURCE: Delavaco Residential Properties Corp.

Delavaco Residential Properties Corp.

April 06, 2015 08:00 ET

Delavaco Residential Properties Corp. Pays Down 10% of Its $25 Million 7.50% Senior Secured Notes

TORONTO, ON--(Marketwired - April 06, 2015) - Delavaco Residential Properties Corp. ("Delavaco" or the "Company") (TSX VENTURE: DVO.U) (OTCQX: DELAF) announces today that it has paid down $2.5 million, or 10% of the $25 million debt facility. The total redemption price is $2,562,500 as the current redemption penalty results in the Company paying 102.5% of the principal being redeemed. This early payment results in an annual interest reduction of $187,500.

"We are excited to report that through continued successful sales of our single family homes in South Florida the company has made a sizable principal payment on our corporate debt and will continue this strategy on monetizing gains on our homes and reducing our high priced leverage on our balance sheet. The market remains strong in South Florida and Delavaco remains committed to this strategy."

About the Debt Facility

On June 4, 2012, the Company closed a private placement debt offering comprised of 7.50% Senior Secured Notes, due June 30, 2016. The Company entered into an underwriting agreement and a 7.50% senior secured notes trust indenture agreement which governs the notes issuance. The Company raised a total amount of $25,000,000 under the agreement by way of issuing 25,000 units, each unit consisting of: one $1,000 principal amount 7.50% note issued pursuant to the agreement and indenture; and 154 common share purchase warrants of the Company. Each common share purchase warrant entitles the holder to acquire one common share in the capital of the Company at a price of C$1.18 and expires on June 3, 2017.

About Delavaco Residential Properties Corp.

Delavaco Residential Properties Corp. was formed on January 27, 2011 to take advantage of the U.S. housing crisis with the goal of significant capital appreciation through the recovery of the housing sector. Now a public company, Delavaco has its shares listed for trading on the TSX Venture Exchange and the OTCQX marketplace in the U.S. Delavaco is focused on the ownership and management of single and multi-family residential properties located principally in the south-eastern United States. Delavaco's real estate portfolio consists of 817 single-family homes in Florida, Georgia and New Jersey, and 311 multi-family units in Florida and Texas. Delavaco also manages a 316 multi-family unit portfolio in Hollywood, Florida. Delavaco's acquisition strategy involves the identification and purchase of under-valued residential properties located in highly populated and dynamic urban centers within the lower to middle income demographic sector. Delavaco's security holders include some of the leading Canadian institutional investors and real estate holding companies.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS: Certain information in this news release constitutes forward-looking statements under applicable securities law. Any statements that are contained in this news release that are not statements of historical fact may be deemed to be forward-looking statements. Forward-looking statements are often identified by terms such as "may", "should", "anticipate", "expect", "intend" and similar expressions. Forward-looking statements in this news release include, but are not limited to, statements with respect to Delavaco's intended acquisition focus. Forward-looking statements necessarily involve known and unknown risks, including, without limitation, risks associated with general economic conditions; adverse industry events; marketing costs; loss of markets; volatility of real estate prices; inability to access sufficient capital from internal and external sources, and/or inability to access sufficient capital on favourable terms; industry and government regulation; changes in legislation, income tax and regulatory matters; the ability of Delavaco to implement its business strategies; competition; currency and interest rate fluctuations and other risks.

Readers are cautioned that the foregoing list is not exhaustive. Readers are further cautioned not to place undue reliance on forward-looking statements as there can be no assurance that the plans, intentions or expectations upon which they are placed will occur. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated. Forward-looking statements contained in this news release are expressly qualified by this cautionary statement.

Neither the Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Additional information about Delavaco Residential Properties Corp. is available at www.delavacoproperties.com or www.sedar.com.

Contact Information

  • For more information please contact:

    Lisa-Marie Iannitelli
    Director of Investor Relations & Business Development
    Delavaco Residential Properties Corp.
    The Exchange Tower
    130 King Street West, Suite 2210
    Toronto, ON M5X 1A9
    Phone: (416) 362-4441
    E-mail: Email contact