Eclipse Residential Mortgage Investment Corporation
TSX : ERM

Eclipse Residential Mortgage Investment Corporation

November 16, 2015 15:38 ET

Eclipse Residential MIC Announces Results of Annual Redemption

TORONTO, ONTARIO--(Marketwired - Nov. 16, 2015) - (TSX:ERM) Eclipse Residential Mortgage Investment Corporation ("Eclipse") announces that as of November 13, 2015, the expiry date for submitting Class A Shares to the annual redemption, the number of Class A Shares submitted for redemption exceeds the expected maximum number of Class A Shares that may be redeemed, which is 15% of the average number of Class A Shares outstanding for the 180-day period immediately preceding the December 30, 2015 annual redemption date. As a result, Eclipse will redeem Class A Shares submitted for redemption and not withdrawn or revoked, on a pro-rata basis such that each shareholder will receive approximately 50.3% of their total shares submitted for redemption in cash.

The Class A Share redemption payment will be made on January 15, 2016, and on or about that time, Class A shares submitted but not redeemed (due to the proration described above) will be returned to client accounts. The redemption price per Class A Share will be equal to the net asset value per Class A Share, less any costs associated with the redemption including commissions and other such costs, if any, related to the liquidation of any portion of the portfolio that is required to fund the redemption.

Eclipse's investment objectives are to acquire and maintain a diversified portfolio comprised primarily of interests in single family residential mortgages that seeks to preserve capital and generate sufficient income to permit Eclipse to pay monthly distributions to the holders of the class A shares. The current distribution amount is $0.05417 per class A share per month representing a cash distribution of 7.1% per annum based on the closing market price on November 13, 2015. Since inception, Eclipse has paid cash distributions of $1.38 per share and has generated an annual compound return of 7.3%, which exceeds its benchmark, the DEX Short Term Bond Index, by 4.5% per annum(1). Eclipse offers a distribution reinvestment plan (DRIP) which provides investors with the ability to automatically reinvest distributions and realize the benefit of compound growth.

Eclipse will announce in early January 2016 the details of the pro-rata redemption.

About Brompton Funds

Brompton Funds, a division of Brompton Group which was founded in 2000, is an experienced investment fund manager with over $2.0 billion in assets under management. Brompton's investment solutions include TSX listed closed-end funds, mutual funds, hedge funds and flow-through limited partnerships. For further information, please contact your investment advisor, call Brompton's investor relations line at 416-642-6000 (toll-free at 1-866-642-6001), email info@bromptongroup.com or visit our website at www.bromptongroup.com.

About MCAP Financial Corporation

One of Canada's largest non-bank mortgage lenders, MCAP Financial Corporation ("MCAP") originates and services all mortgages for Eclipse Residential MIC. MCAP has more than 20 years of experience underwriting and servicing Canadian Single Family Residential Mortgages, with over $52 billion in mortgage assets managed for banks, lifecos, credit unions and institutional investors.

(1) Please see www.bromptongroup.com for returns for all periods.

You will usually pay brokerage fees to your dealer if you purchase or sell shares of the investment fund on the Toronto Stock Exchange or other alternative Canadian trading system (an "exchange"). If the shares are purchased or sold on an exchange, investors may pay more than the current net asset value when buying shares of the investment fund and may receive less than the current net asset value when selling them.

There are ongoing fees and expenses associated with owning shares of an investment fund. An investment fund must prepare disclosure documents that contain key information about Eclipse. You can find more detailed information about Eclipse in the public filings available at www.sedar.com. The indicated rates of return are the historical annual compounded total returns including changes in share value and reinvestment of all dividends and do not take into account certain fees such as redemption costs or income taxes payable by any securityholder that would have reduced returns. Investment funds are not guaranteed, their values change frequently and past performance may not be repeated.

Certain statements contained in this news release constitute forward-looking information within the meaning of Canadian securities laws. Forward-looking information may relate to matters disclosed in this press release and to other matters identified in public filings relating to Eclipse, to the future outlook of Eclipse and anticipated events or results and may include statements regarding the future financial performance of the Fund. In some cases, forward-looking information can be identified by terms such as "may", "will", "should", "expect", "plan", "anticipate", "believe", "intend", "estimate", "predict", "potential", "continue" or other similar expressions concerning matters that are not historical facts. Actual results may vary from such forward-looking information. Investors should not place undue reliance on forward-looking statements. These forward-looking statements are made as of the date hereof and we assume no obligation to update or revise them to reflect new events or circumstances.

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