Eclipse Residential Mortgage Investment Corporation
TSX : ERM

Eclipse Residential Mortgage Investment Corporation

September 11, 2017 15:15 ET

Eclipse Residential Mortgage Investment Corporation Announces Treasury Offering

TORONTO, ONTARIO--(Marketwired - Sept. 11, 2017) -

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISTRIBUTION IN THE UNITED STATES

(TSX:ERM) Eclipse Residential Mortgage Investment Corporation ("Eclipse") is pleased to announce that it is undertaking a treasury offering of common shares (the "Common Shares") at a price of $10.20 per Common Share.

The sales period for this offering will end at 9:00 a.m. (ET) Thursday, September 14, 2017. The offering is expected to close on or about September 21, 2017 and is subject to certain closing conditions including approval by the TSX.

Eclipse's investment objectives are to acquire and maintain a diversified mortgage portfolio primarily composed of single family residential mortgages that seeks to preserve capital and generate income to pay monthly distributions to shareholders of Eclipse. The current dividend amount is $0.0625 per Common Share per month representing a dividend yield of 7.4% per annum based on a $10.20 issue price. Since inception on June 28, 2013 to August 31, 2017, Eclipse has generated an 8.0% per annum total return on book value, while growing the annualized dividend rate by 25%.(1)

The syndicate of agents for the offering is being led by RBC Capital Markets, CIBC Capital Markets and TD Securities Inc.

About Brompton Funds

Brompton Funds, a division of Brompton Group ("Brompton") which was founded in 2000, is an experienced investment fund manager with approximately $2 billion in assets under management. Brompton's investment solutions include TSX traded funds, mutual 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 mortgage financing companies, MCAP Financial Corporation ("MCAP") originates and services all mortgages for Eclipse. MCAP has more than 20 years of experience underwriting and servicing Canadian single family residential mortgages, with over $60 billion in mortgage assets managed for banks, life insurance companies, credit unions and institutional investors.

A short form base shelf prospectus containing important detailed information about the securities being offered has been filed with securities commissions or similar authorities in each of the provinces and territories of Canada. Copies of the short form base shelf prospectus may be obtained from a member of the syndicate. Eclipse intends to file a supplement to the short form base shelf prospectus and investors should read the short form base shelf prospectus and the prospectus supplement before making an investment decision. There will not be any sale or any acceptance of an offer to buy the securities being offered until the prospectus supplement has been filed with the Securities Commissions or similar authorities in each of the provinces and territories of Canada.

(1) Cumulative growth in dividends (not annualized)

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 Eclipse. 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.

The securities offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or any applicable exemption from the registration requirements. This news release does not constitute an offer to sell or the solicitation of an offer to buy securities nor will there be any sale of such securities in any state in which such offer, solicitation or sale would be unlawful.

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